An investor who wants a long position in a ____ must first place the order with a broker, who then passes it on to the trading pit or electronic network. Details of the order are then passed on to the exchange clearinghouse.
A) call option
B) put option
C) forward contract
D) futures contract
E) All of these are correct.

Question

Quizplus · Accepted Answer

Only futures contracts are traded on trading pits or electronic networks that operate in exchanges. Options and forward contracts, on the other hand, are traded in over-the-counter (OTC) markets where buyers and sellers negotiate the terms of the contract directly with each other.

An Investor Who Wants a Long Position in a ____