If an individual who takes a position as a buyer in a futures contract wishes to realise a profit from their position,they should:
A)find a buyer and sell their position.
B)offset their original contract by entering into another as a seller.
C)offset their original contract by entering into another as a buyer.
D)take delivery of the commodity.

Question

Quizplus · Accepted Answer

To realize a profit from their position, the buyer in a futures contract should offset their original contract by entering into another as a seller. This means that they would sell an opposite contract to their original position, thereby canceling out the original obligation. This strategy is known as "offsetting," and it is a common way for futures traders to realize profits or limit losses without taking physical delivery of the underlying commodity.

If an Individual Who Takes a Position as a Buyer