Describe the long position in an options contract?
An option is a contract giving the long the right to buy or sell a given quantity of an asset at a particular price at some time in the future, however not enforcing any obligation on him if the spot price is more favourable than the exercise price. Since the option owner ought not to exercise the option if it is to his disadvantage, the alternative contain a price, or premium, whereas no price is paid at inception to enter into a futures (or forward) contract.