Chapter 01 · Section 1.1
Delivery
Forwards Futures
Contract Terms Variable Standard Delivery Expected ........ Trading ........ ........ Margins ........ ........ Credit Risk ........ ........ Liquidity ........ ........ Cash Flow ........ ........
With futures contracts
d) only 20-30% usually result in delivery.
No. 20-30% is too high. Though the possibility of delivery is very important since it ties futures and cash prices together, usually far less than 5% (in financial futures up to 10%) of the contracts result in delivery.
a) most of them result in delivery.
b) none of them result in delivery, because the market is used only by investors.
c) only 2-5% usually result in delivery.
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