An investor establishes a long position in a futures contract now (time 0) and holds the position until maturity (time T). The sum of all daily settlements will be ________.

Question

Quizplus · Accepted Answer

The sum of all daily settlements in a long futures position is the difference between the final settlement price (FT) and the initial futures price (F0). Therefore, the correct answer is C (FT - F0).

An Investor Establishes a Long Position in a Futures Contract