Being long a futures contract is equivalent to purchasing a put option.

Question

Quizplus · Accepted Answer

Being long a futures contract implies that the investor is obligated to buy the underlying asset at a specified price and time in the future. On the other hand, purchasing a put option provides the buyer with the right, but not the obligation, to sell the underlying asset at a specified price and time in the future. These are two distinct investment strategies with different risk and reward profiles, and they are not equivalent.

Being Long a Futures Contract Is Equivalent to Purchasing a Put