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The Cash Settlement of a Futures Contract Does NOT

Question 50

Multiple Choice

The cash settlement of a futures contract does NOT:


A) result in the trader realising a profit or loss on their futures trading
B) overcome the need for the futures market to arrange physical settlement of many of the contract items
C) depend on the difference between the contracts buying price and their selling price
D) require that traders own the contract item
E) end the traders obligations under the futures contract.

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