Suppose That a Futures Contract with Asset XYZ as the Underlying

Multiple Choice

Suppose that a futures contract with Asset XYZ as the underlying instrument has a futures price equal to $100 and a settlement date one month from now. Which of the below statement is FALSE for an investor who SELLS this futures contract?

A) By selling this futures contract, the investor would be agreeing to sell Asset XYZ for $100 one month from now.
B) If Asset XYZ's price falls below $100, the investor (who sells this futures contract) is protected because she will receive $100 upon delivery of the asset to satisfy the futures contract.
C) If Asset XYZ's price rises above $100, the investor (who sells this futures contract) will not realize the price appreciation because she must deliver the asset for an agreed-upon amount of $100.
D) By selling the futures contract, the investor has locked in a price of $100, and fails to realize a gain if the price declines while avoiding a loss if the price rises.