Examveda

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

D. Always equals the average of the purchase price and the price of the underlying asset

Answer: Option C


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Related Questions on Business Finance

Match List-I with List-II and select the correct answer:

List-I List-II
a. Modigliani Miller approach 1. Commercial papers
b. Net operating income approach 2. Working capital management
c. Short-term money market instrument 3. Capital structure
d. Factoring 4. Arbitrage

A. a-4, b-3, c-1, d-2

B. a-3, b-4, c-1, d-2

C. a-2, b-3, c-1, d-4

D. a-3, b-2, c-4, d-1