If an asset price declines, the investor with a ________ is exposed to the largest potential loss.
A) long call option
B) long put option
C) long futures contract
D) short futures contract

Question

Quizplus · Accepted Answer

A long futures contract obligates the investor to purchase the asset at a set price, regardless of the market price at the time of purchase. If the asset's price declines significantly, the investor faces a large potential loss because they must buy the asset at a much higher price than its current market value.

If an Asset Price Declines, the Investor with a ________