With regard to a futures contract, the long position is held by
A) the trader who bought the contract at the largest discount.
B) the trader who has to travel the farthest distance to deliver the commodity.
C) the trader who plans to hold the contract open for the lengthiest time period.
D) the trader who commits to purchasing the commodity on the delivery date.
E) the trader who commits to delivering the commodity on the delivery date.

Question

Quizplus · Accepted Answer

The long position in a futures contract refers to the party who agrees to buy the underlying asset at a future date. This position is taken with the expectation that the price of the asset will rise in the future.

With Regard to a Futures Contract, the Long Position Is