If an investor who has previously purchased a futures contract wishes to liquidate his or her position,he or she would sell an identical futures contract with the same settlement date.

Question

Quizplus · Accepted Answer

When an investor wants to liquidate their position in a futures contract, they can sell an identical contract with the same settlement date to exit their position. This is known as closing out the position. Therefore, the statement is true.

If an Investor Who Has Previously Purchased a Futures Contract