With regard to a futures contract, the short 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 short position in a futures contract is held by the trader who commits to delivering the commodity on the delivery date. This contrasts with the long position, where the trader commits to purchasing the commodity.

With Regard to a Futures Contract, the Short Position Is