The vast majority of futures contracts are:
A) settled by delivery of the commodity.
B) cash settled at delivery with no exchange of the commodity.
C) offset prior to delivery.
D) equally settled in cash or delivery of the commodity.

Question

Quizplus · Accepted Answer

Most futures contracts are offset prior to delivery, meaning the positions are closed out or settled by entering an opposite transaction, rather than proceeding to the delivery of the physical commodity or financial instrument.

The Vast Majority of Futures Contracts Are