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Commerce · Q484

Business Finance

Graduate and Post Graduate · Commerce · question 484

Q484

On the expiration date of the futures contract, the price of the contract

A.
Always equals the purchase price of the contract
B.
Always equals the average price over the life of the contract
C.
Always equals the price of the underlying asset
Answer
D.
Always equals the average of the purchase price and the price of the underlying asset

Answer: Option C

Solution

Answer: Option C
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