At the expiration of a futures contract, futures prices converge to ______.
A) Eurocurrency rates
B) forward prices
C) market prices
D) shadow prices
E) spot prices

Question

Quizplus · Accepted Answer

Futures prices converge to spot prices at the expiration of the contract. This is because futures contracts are designed to track the underlying cash market (spot market) and therefore their prices must ultimately converge to the spot price upon expiration.

At the Expiration of a Futures Contract, Futures Prices Converge