What Happens to the Price of a Futures Contract as Expiration

question 70

Multiple Choice

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

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

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