The difference between a call option and a long position in a futures contract Introduction: A call option is an option where the buyer has the power but not the obligation to buy securities at any fixed price within a period of time. Futures contract is a contract between two parties, one is short position and another is long position.

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Chapter 2, Problem 34C

Summary Introduction

To determine:

The difference between a call option and a long position in a futures contract

Introduction:

A call option is an option where the buyer has the power but not the obligation to buy securities at any fixed price within a period of time.

Futures contract is a contract between two parties, one is short position and another is long position.

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