The presence of the delivery option in a futures contract means that
A) A futures contract may be physically settled but not a forward contract.
B) All else remaining the same, a futures contract will trade at a lower price than a forward.
C) All else remaining the same, a futures contract will trade at a higher price than a forward.
D) A futures contract mat be settled in cash or by delivery of the physical asset.

Question

The presence of the delivery option in a futures contract means that 
A) A futures contract may be physically settled but not a forward contract.
B) All else remaining the same, a futures contract will trade at a lower price than a forward.
C) All else remaining the same, a futures contract will trade at a higher price than a forward.
D) A futures contract mat be settled in cash or by delivery of the physical asset.

Quizplus · Accepted Answer

The Answer of The presence of the delivery option in a futures contract means that 
A) A futures contract may be physically settled but not a forward contract.
B) All else remaining the same, a futures contract will trade at a lower price than a forward.
C) All else remaining the same, a futures contract will trade at a higher price than a forward.
D) A futures contract mat be settled in cash or by delivery of the physical asset.

The Presence of the Delivery Option in a Futures Contract