The Buyer of a Futures Contract

question 14

Multiple Choice

The buyer of a futures contract

• A)assumes the short position.
• B)has the obligation to deliver the underlying financial instrument at the specified date.
• C)has the obligation to receive the underlying financial instrument at the specified future date.
• D)may, at his or her option, deliver or receive the underlying financial instrument at the specified date.

---

Definitions:

UPA

This could refer to the Uniform Partnership Act, which is a set of laws adopted by some states in the U.S. that regulate the operations of partnerships.

Partnership

A legitimate enterprise setup in which management duties and profits are divided among two or more persons.

UPA

Uniform Partnership Act; a law that governs the operations of partnerships in the United States.

Capital City Partnership

A collaboration or alliance formed between businesses, government entities, and/or non-profit organizations aimed at promoting economic development in a city's capital area.