Which one of the following futures contracts is written on an asset that cannot be delivered?
A) U.S. Treasury bills
B) Wheat
C) Standard and Poor's index
D) British pounds

Question

Quizplus · Accepted Answer

Futures contracts are typically written on assets that can be physically delivered, such as wheat or British pounds. However, futures contracts on financial indexes, such as the Standard and Poor's index, cannot be physically delivered, as they are simply a measure of the overall performance of a group of stocks. Instead, the contracts are settled in cash based on the index's value at expiration.

Which One of the Following Futures Contracts Is Written on an Asset