The Trader Who Holds the Long Position in a Futures

question 60

Multiple Choice

The trader who holds the long position in a futures contract:

• A)must settle it by buying the contract item on the settlement date
• B)has sold the futures contract
• C)can closeout their position any time prior to the settlement date by taking an offsetting short position
• D)has a contractual obligation to sell the contract item on the settlement date
• E)can only closed-out the position early with the agreement of the contract's seller.

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Definitions:

Discovered

The act of finding something for the first time or uncovering information previously unknown.

Ethical Behaviour

Acting in ways consistent with societal norms and values concerning moral principles, including honesty, fairness, and integrity.

Supervisors

Individuals within an organization responsible for overseeing and managing the work of other employees or teams.

Peers

Individuals who are at the same level or rank in an organization or in the context of a particular situation.