According to futures contract, the long position states the ___________?
Correct answer: B. purchase of future contract
- A. purchase of forward contracts
- B. purchase of future contract
- C. sale of futures contract
- D. sales of forward contracts
Explanation
A long futures position means agreeing to buy the underlying asset at the contract's specified future date and price. Selling a futures contract creates a short position.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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