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Multiple Choice Questions

Normal 0 false false false EN GB X NONE X NONE MicrosoftInternetExplorer4 Normal 0 false false fals...........

Economic Affairs Financial Markets
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    A buyer of a future contract

    Goes long in the cash market because the contract requires him to deliver the underlying asset on the expiry date

    Incorrect Answer

     Goes short in the cash market because the contract requires him to deliver the underlying asset on the expiry date.

    Incorrect Answer

     Goes short in the cash market because the contract requires him to take delivery of the underlying asset on the expiry date.

    Incorrect Answer

    Goes long in the cash market because the contract requires him to take delivery of the underlying asset on the expiry date.

    Correct Answer
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    Explanation:

     Exp:

     

    A futures contract is a legal agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

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