Chapter 01 · Section 1.1

Delivery

                   Forwards             Futures

Contract Terms     Variable             Standard
Delivery           Expected             ........
Trading            ........             ........
Margins            ........             ........
Credit Risk        ........             ........
Liquidity          ........             ........
Cash Flow          ........             ........

With futures contracts

a) most of them result in delivery.
• b) none of them result in delivery, because the market is used only by investors.
  No. There will besome cases of actual delivery. Those who wish can take or make delivery against their open futures positions. This is very important since it ties futures and cash prices together.
  c) only 2-5% usually result in delivery.
  d) only 20-30% usually result in delivery.

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