boulevardier comments on How to Price a Futures Contract

[boulevardier]

Thanks, great post and clearly explained. One question – doesn’t longing imply that we are agreeing to buy the security for the strike price $k^{-}$ at time $T$?

Long the future. You agree to sell the underlying security at time $T$ for price $k^{-}$. This contract costs you nothing upfront.

[lsusr]

Fixed. Thanks.