Why Are Most Futures Contracts Not Settled Through Delivery of the Product

question 69

Multiple Choice

Why are most futures contracts not settled through delivery of the product?

• A) Most contracts are settled through the margin account.
• B) Most contracts expire with neither party having an obligation to the other party.
• C) Most participants cancel their futures contracts through purchase of an option contract.
• D)It is easier and cheaper to settle in cash or by offset.

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Definitions:

Immunocompetent T Cells

Immunocompetent T cells are a type of lymphocyte that have matured and gained the ability to recognize and respond to antigens, playing a central role in the adaptive immune response.

Antibody Mediated

Referring to the immune response that involves B cells producing antibodies to neutralize pathogens.

Lymphocytes

A type of white blood cell crucial for the immune system, mediating immune responses and including T cells and B cells.

Thymus

An organ located in the upper chest, which is part of the immune system and important for the development of T-lymphocytes.