At the expiration of a futures contract,the futures price will be:
A) greater than the spot price.
B) equal to the spot price.
C) less than the spot price.
D) greater than the forward price.

Question

Quizplus · Accepted Answer

At the expiration of a futures contract, the futures price will converge to the spot price, resulting in the futures price being equal to the spot price. This is known as the principle of convergence.

At the Expiration of a Futures Contract,the Futures Price Will