The following process is the only type of permissible futures transaction that occurs off the floor of the exchange
A) determination of the position day
B) determination of the delivery day
C) determination of a daily settlement price
D) offsetting
E) exchange for physicals

Question

Quizplus · Accepted Answer

Exchange for physicals (EFP) is a futures transaction that occurs off the floor of the exchange. It involves the exchange of a futures contract position for a corresponding position in the underlying physical commodity or a related financial instrument. This type of transaction is typically used by traders who want to avoid taking physical delivery of a commodity or who want to take physical delivery at a location or time that is different from that specified by the exchange. The other choices are all types of futures transactions that occur on the floor of the exchange.

The Following Process Is the Only Type of Permissible Futures