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 contract allows the manager to purchase the underlying asset (in this case, an index of stocks) at a set price in the future, which can be used to profit if the price of the index increases.

Who Would Be Most Likely to Buy a Long Stock