The Customary Delivery Procedure at the Expiration of a Commodity

question 4

Multiple Choice

The customary delivery procedure at the expiration of a commodity futures contract is:

• A) delivering the commodity to the futures buyer.
• B) delivering the commodity to the futures exchange.
• C) offsetting the initial futures position and settling in cash.
• D)adding the profit or loss to your margin account and continuing to trade.

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Definitions:

Operating Period

The length of time during which a business or an operation completes a full cycle of activity, typically represented by a fiscal year or quarter.

Divisions

Segments or sections of a larger organization, often treated as separate units for accounting or managerial purposes.

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, used to cover fixed costs and generate profit.

Business Segments

Different parts of a company that operate in distinct markets or industries, often reported separately in financial statements.