Question

The buyer of a futures contract

Question options:

	A. may not sell the contract without the permission of the original seller.
	B. assumes the long position
	C. assumes the short position
	D. has the obligation to deliver the underlying financial instrument at the specified future date.

A futures contract can be defined as

Question options:

	A. an agreement on the delivery of a commodity or financial instrument at an agreed-upon future date at a currently agreed-upon price.
	B. an agreement on the delivery of a commodity or financial instrument, with the price and date of delivery to be negotiated subsequently.
	C. an agreement on the delivery of a commodity or financial instrument at an agreed-upon future date, with the price to be negotiated at the time of delivery.
	D. an agreement on the delivery of a commodity or financial instrument at a currently agreed-upon price, with date of delivery to be negotiated subsequently.

You think Apple stock will go up. All of the following are reasonable strategies except:

Question options:

	A. Buy a put on Apple stock
	B. Get yourself into a long position on Apple stock
	C. Hold Apple stock you already own
	D. Buy Apple stock
	E. Buy a call on Apple stock

Answer 1

1.

The buyer of a futures contract: B. assumes the long position

2.

A futures contract can be defined as:

A. an agreement on the delivery of a commodity or financial instrument at an agreed-upon future date at a currently agreed-upon price.

3.

You think Apple stock will go up. All of the following are reasonable strategies except:

A. Buy a put on Apple stock