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

question 39

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 an offsetting futures transaction.

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Definitions:

Case Management

A collaborative process of assessment, planning, facilitation, care coordination, evaluation, and advocacy for options and services to meet an individual's comprehensive health needs.

Team Communication

The process of sharing information, ideas, and feelings among members of a team to achieve a common goal effectively.

Priority Setting

The process of establishing a sequence or hierarchy of importance or urgency among a set of tasks or responsibilities, often essential in effective time management and resource allocation.

Oral Care

The practice of keeping one's mouth clean and free of disease and other problems by regular brushing and cleaning between the teeth.