An undeliverable futures contract refers to a futures contract in which:
A)there is no physical settlement
B)there is no mandatory cash settlement
C)one of the parties is unable to deliver
D)money has been lost due to a party having chosen an unfavourable hedging strategy

Question

Quizplus · Accepted Answer

An undeliverable futures contract is one where there is no physical settlement, meaning the contract is settled in cash rather than through the delivery of the underlying asset.

An Undeliverable Futures Contract Refers to a Futures Contract in Which