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?