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The Presence of the Delivery Option in a Futures Contract

Question 14

Multiple Choice

The presence of the delivery option in a futures contract means that


A) A futures contract may be physically settled but not a forward contract.
B) All else remaining the same,a futures contract will trade at a lower price than a forward.
C) All else remaining the same,a futures contract will trade at a higher price than a forward.
D) A futures contract mat be settled in cash or by delivery of the physical asset.

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