Explain what it means by going long in a futures


A. Explain what it means by going long in a futures contract.

B. If you go long on one S&P 500 futures contract with a market value of $500, 000, are you in effect increasing or decreasing your exposure to the stock market, and by what dollar amount?

C. If you have $500,000 investments in stock and you go short $500,000 in stock futures contract, how much do you have at risk in the market?

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Financial Management: Explain what it means by going long in a futures
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