Which of the following statements is true?
A) In Australian interest rate futures there is no physical settlement of either 10 year or 3 year bond futures.
B) In Australian interest rate futures there is no physical settlement of either 10 year or 5 year bond futures.
C) In Australian interest rate futures there is no physical settlement of either 5 year or 3 year bond futures.
D) In Australian interest rate futures there is always physical settlement.

Question

Quizplus · Accepted Answer

In Australian interest rate futures, there is cash settlement of both 10 year and 3 year bond futures and no physical settlement. Therefore, option A is the correct statement. Option B and C are incorrect as there is no physical settlement of 5 year bond futures either. Option D is also incorrect as there is no always physical settlement in Australian interest rate futures.

Which of the Following Statements Is True