Delivery of stock index futures
A) is never made.
B) is made by a cash settlement based on the index value.
C) requires delivery of 1 share of each stock in the index.
D) is made by delivering 100 shares of each stock in the index.
E) is made by delivering a value-weighted basket of stocks.

Question

Quizplus · Accepted Answer

Stock index futures are typically settled in cash based on the value of the index at the time of settlement, rather than through the delivery of physical shares.

Delivery of Stock Index Futures