Which of the following is correct? More than one answer is possible You close ou

ID: 1175325 • Letter: W

Question

Which of the following is correct? More than one answer is possible

You close out a long future position by buying a short future.

The owner of a long future position has the right, but not the obligation to buy a product at a set time for a set price in the future.

The owner of a short future position has the obligation to sell a product for a set price at a set time in the future.

No money changes hands between the long and short side of a future contract when the contract is signed.

You close out a long future position by buying a short future.

The owner of a long future position has the right, but not the obligation to buy a product at a set time for a set price in the future.

The owner of a short future position has the obligation to sell a product for a set price at a set time in the future.

No money changes hands between the long and short side of a future contract when the contract is signed.

correct option is c& D

C"-The owner of a short future position has the obligation to sell a product for a set price at a set time in the future.

The owner of short future contract has an obligation to sell even if price goes unfavorable at a future price at future period

D-No money changes hands between the long and short side of a future contract when the contract is signed.

There is no future premium is paid on contract at the time contract is signed.

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