Most Futures Contracts Are Closed by

question 22

Multiple Choice

Most futures contracts are closed by

• A) delivery
• B) offset
• C) exercise
• D) default
• E) none of the above

---

Definitions:

Draft

A preliminary version of a piece of writing or a plan for something, subject to revisions or edits.

Breach of Warranty

The violation of a guarantee or promise regarding the quality or condition of a product.

Bearer Note

Bearer Note is a type of negotiable instrument, the benefits of which are payable to whoever holds the note, making it transferable by mere delivery.

Recourse

refers to the right to demand a legal or financial remedy when a contractual obligation is not honored by the other party.