When an investor purchases commodity contracts,the individual takes physical delivery of the goods.

Question

Quizplus · Accepted Answer

When an investor purchases commodity contracts, they do not typically take physical delivery of the goods. Instead, they may sell the contracts before the expiration date or settle in cash. Physical delivery would require the investor to arrange for storage, transportation, and other logistical arrangements, which is generally not feasible or desirable for most investors.

When an Investor Purchases Commodity Contracts,the Individual Takes Physical Delivery