What Happens to the Price of a Futures Contract as Expiration

question 112

Multiple Choice

What happens to the price of a futures contract as expiration draws closer?

• A) It exceeds the spot price of the asset.
• B) It is exceeded by the spot price of the asset.
• C) It approaches the spot price of the asset.
• D) There is no relationship between futures price and spot price as the contract approaches expiration.

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