Q802
In derivative contract, settlement by offset, denotes which one of the following?
A.
Settlement of a maturing futures contract by cash payment in order to offset the mutal obligation on the contract
B.
Closing out futures contract before maturity with an offsetting trade
AnswerC.
Terminating a futures contract by executing a new contract by way of payment of cash in a mutually agreed proportion
D.
A fresh contract is entered into by discarding the earlier contract outside the exchange
Answer: Option B
Solution
Answer: Option B
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