Stock Index Futures Cannot Be Closed Out Before the Settlement

question 21

True/False

Stock index futures cannot be closed out before the settlement date.

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Definitions:

Limited Partner

An investor in a partnership who has limited liability to the extent of their investment in the partnership and does not participate in day-to-day management.

Bankruptcy Loss

Financial losses incurred due to the declaration of bankruptcy, affecting creditors, investors, and the bankrupt entity itself.

Corporate Shares

Units of ownership interest in a corporation that entitle the shareholder to a portion of the company's profits.

Shareholder

An individual or entity that owns shares in a corporation, thus holding a portion of the company's equity and possibly influencing its governance.