Current selling price on a futures contract reflects what investors in the market expect cash prices to be:

Question

Quizplus · Accepted Answer

The current selling price on a futures contract reflects what investors in the market expect cash prices to be at the time of delivery. This is because futures contracts are agreements to buy or sell an asset at a specific date in the future, so the price is based on the expected price of the asset at that time. The other choices (end of the day, week, month, year) are all too short-term to be reflected in the current selling price of a futures contract.

Current Selling Price on a Futures Contract Reflects What Investors