A Futures Contract to Take Delivery Is Canceled by

question 47

Multiple Choice

A futures contract to take delivery is canceled by

• A)entering into a contract to make delivery
• B)refusing to take delivery
• C)refusing to make delivery
• D)letting the contract expire

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Definitions:

Holding-Period Return

The total return received from holding an asset or portfolio of assets over a specified period, including interest, dividends, and capital gains.

Treasury Bill

Short-term government securities issued at a discount from the face value and maturing at par, used to finance government spending.

Par

Par refers to the face value of a bond or stock, which is the amount originally paid for it and the amount that will be repaid at maturity.

Geometric Average Return

The compounded annual rate of return over time, accounting for the compounding of investment returns.