Future Contracts

(1) Is a future contract American or European by nature?

(2) Can a future converge to the spot price even before expiry?

(3) Can a future contract be sold before expiry?

(1) Futures are not classified as American or European. only options are. If you are asking whether you can get out of a future contract before expiry. Yes you can.

(2) As per my understanding: Theoretically it is possible but to exactly converge will be a very rare happening.

(3) Yes.

Cheers !



My pleasure.