Which of the following statements about closing a futures position is least accurate? A) Closing a position through delivery refers exclusively to the physical delivery of goods. B) Few futures positions are settled by delivery of cash or assets. C) Except for exchange for physicals (EFP) transactions, futures contracts must be closed on the exchange floor. D) As maturity of a contract approaches, more and more traders will attempt to close their positions. Help pls…
I believe answer is A. You have other ways to close a futures position, and physical delivery of goods is I believe the least used approach.
But they have specified that they are closing position thru delivery…
This is one of those where you find your answer through elimination. All except for A sound correct. Also futures can be closed by delivery of “cash” and not just actual goods. So it can’t be exclusively goods.