The S&P 500 Index futures contract is an example of a(n) ________ delivery contract. The pork bellies contract is an example of a(n) ________ delivery contract.
A) cash; cash
B) cash; actual
C) actual; cash
D) actual; actual

Question

Quizplus · Accepted Answer

The S&P 500 Index futures contract is settled in cash, not by delivering the actual stocks that make up the index. The pork bellies contract, on the other hand, is an example of an actual delivery contract, where the physical goods (in this case, pork bellies) are delivered upon contract expiration.

The S&P 500 Index Futures Contract Is an Example of A(n)