Vidyalelo
Management · Q625

International Finance and Treasury

Graduate and Post Graduate · Management · question 625

Q625

According to futures contract, long position states

A.
purchase of forward contracts
B.
purchase of future contract
Answer
C.
sale of futures contract
D.
sales of forward contracts

Answer: Option B

Solution

Answer: Option B
Solution:
According to futures contract, long position states purchase of future contract. A futures contract is a legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future. Futures contracts are standardized for quality and quantity to facilitate trading on a futures exchange.