Which One of the Following Statements Related to Futures Contracts

question 56

Multiple Choice

Which one of the following statements related to futures contracts is correct?

• A)The buyer of the contract has a short position.
• B)The buyer of the contract has the right to either accept delivery or cancel the contract.
• C)Futures contracts can be cancelled by either the buyer or the seller with 10 days' notice to the other party.
• D)Both the buyer and the seller of the contract are obligated to fulfill their duties as outlined in the futures contract.
• E)The buyer of the contract must deliver the underlying asset on the settlement date.

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