Question

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

Answer 1

Answer:

D

Explanation:

Firstly, before we answer this question, we need to know what a futures contract is.

A futures contract can be defined as an agreement specifying the delivery of a commodity or a security at an agreed future date and at a currently agreed price.

This means to set a future contract rolling, we need to have an agreed date if delivery and currently agreed price by both parties involved.

Now, to the question, the correct answer is D. He has the obligation to deliver the underlying financial instrument at the specified future date