Why Are Most Futures Contracts Not Settled Through Delivery of the Product

question 69

Multiple Choice

Why are most futures contracts not settled through delivery of the product?

• A) Most contracts are settled through the margin account.
• B) Most contracts expire with neither party having an obligation to the other party.
• C) Most participants cancel their futures contracts through purchase of an option contract.
• D)It is easier and cheaper to settle in cash or by offset.

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Display Contents

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In computing, to increase the size, capabilities, or range of operations of software or hardware, often through upgrades or additional components.

Restore

The process of returning data or a system to its original or a previous state, often used in the context of recovery from loss or corruption.

App Bar

The App Bar is a user interface element commonly found in mobile and web applications that provides easy access to the app's main functions and navigation options.