Asked by Zeyka Strandzheva on Jul 07, 2024

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Approximately ________ of futures contracts result in actual delivery.

A) 0%
B) less than 1% to 3%
C) less than 5% to 15%
D) less than 60% to 80%

Futures Contracts

Contracts that obligate the purchase or sale of a specific commodity or financial asset at an agreed-upon price at a future date.

Actual Delivery

The physical transfer of a security or commodity from seller to buyer, which finalizes the transaction process.

Result

The outcome or conclusion of a process, experiment, or event, often used to assess performance or effectiveness.

  • Perceive the significance and outcomes of the convergence phenomenon in the pricing structure of futures markets.
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Verified Answer

TA
Tanaijah AustinJul 09, 2024
Final Answer :
B
Explanation :
The vast majority of futures contracts (over 95%) are settled in cash instead of physically delivering the underlying asset. Therefore, less than 1% to 3% of futures contracts result in actual delivery.