As Time Draws Closer to Contract Expiration, Futures Contract Prices

question 21

Multiple Choice

As time draws closer to contract expiration, futures contract prices can be expected to:

• A)Increase as the demand for delivery intensifies
• B)Decrease as speculators resolve the uncertainty of prices
• C)Move similarly to broad-based market indices, such as the S&P 500
• D)Converge upon the spot price

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