On the Expiration Date of a Futures Contract,the Price of the Contract

question 16

Multiple Choice

On the expiration date of a futures contract,the price of the contract converges to the

• A)purchase price of the contract.
• B)average price over the life of the contract.
• C)price of the underlying asset.
• D)average of the purchase price and the price of the underlying asset.

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Definitions:

Nonmarine Conditions

Environmental or geological conditions that occur in areas not influenced by the sea, often referring to freshwater or terrestrial habitats.

Coral Reef

Underwater ecosystems characterized by reef-building corals. These structures provide habitat for a diverse range of marine species and are important for coastal protection.

Evaporite Minerals

Minerals formed by the evaporation of water, leaving behind salts and other soluble substances, common in arid environments or enclosed bodies of water.

Limestone

A sedimentary rock composed mainly of calcium carbonate, often formed from the remains of marine organisms.