Which of the Following Statements Is (Are) True About Futures

question 18

Multiple Choice

Which of the following statements is (are) true about futures contracts?
I. The buyer of the contract must take delivery of the underlying commodity.
II. To reverse a position, the buyer of a contract must sell an identical contract which is recognized as offsetting the other one.

• A) Only statement I is correct.
• B) Only statement II is correct.
• C) Both statements I and II are correct.
• D) Neither statement I nor II is correct.

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