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When Purchasing a Future Contract, the Buyer of a Futures

Question 128

Multiple Choice

When purchasing a future contract, the buyer of a futures contract:


A) agrees to pay the seller later where the payment is based on the future price of some asset.
B) assumes very little risk of the future price fluctuation of some asset.
C) must pay a set amount to the seller regardless of what the future price turns out to be.
D) none of these are true.

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