The Presence of the Delivery Option in a Futures Contract

question 7

Multiple Choice

The presence of the delivery option in a futures contract means that

• A)A futures contract may be physically settled but not a forward contract.
• B)All else remaining the same,a futures contract will trade at a lower price than a forward.
• C)All else remaining the same,a futures contract will trade at a higher price than a forward.
• D)A futures contract mat be settled in cash or by delivery of the physical asset.

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Definitions:

Retail Industry

The sector of the economy that is composed of individuals and companies engaged in the selling of finished products to end-user consumers.

Non-executive Directors

Board members who are not part of the company's day-to-day operations but are responsible for oversight and strategic guidance.

Chief Financial Officer

A senior executive responsible for managing the financial actions of a company, including financial planning, risk management, and financial reporting.

General Manager

An executive responsible for overseeing the daily operations and business activities within a specific area or department of a company.