You hold one long oil futures contract that expires in April. To close your position in oil futures before the delivery date, you must

Question

Quizplus · Accepted Answer

To close a position in futures before the delivery date, you must take an opposite action in the same contract month. If you hold a long (bought) position, you close it by selling a contract of the same type and month. Therefore, selling one April oil futures contract is the correct action.

You Hold One Long Oil Futures Contract That Expires in April