The Cash Settlement of a Futures Contract Does NOT

question 95

Multiple Choice

The cash settlement of a futures contract does NOT:

• A)result in the trader realising a profit or loss on their futures trading
• B)overcome the need for the futures market to arrange physical settlement of many of the contract items
• C)depend on the difference between the contracts buying price and their selling price
• D)require that traders own the contract item
• E)end the traders obligations under the futures contract.

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