Who would be most likely to buy a long stock index future?
A)a mutual fund manager who believes the market will rise
B)a mutual fund manager who believes the market will fall
C)a mutual fund manager who believes the market will be stable
D)none of the above would be likely to purchase a futures contract

Question

Quizplus · Accepted Answer

A mutual fund manager who believes the market will rise would be most likely to buy a long stock index future. This would allow them to profit from the expected increase in the market, as they would be able to purchase the index at today's price and sell it at a higher price in the future, thus making a profit.

Who Would Be Most Likely to Buy a Long Stock