Time for derivatives Q's!

CFA Level I
#1

name the four ways to eliminate a futures contract

#2

eliminate=terminate

#3

getterdone Wrote: ------------------------------------------------------- > name the four ways to eliminate a futures contract anyone get this one?

#4
  1. Allow to expire and take delivery 2) Allow to expire and make delivery 3) Close out by entering an opposite position 4) Allow a cash-settled contract to expire and take money from margin account 5) Do an Exchange for Physicals (EFP) where you exchange the futures contract for the underlier or something similar 6) Do an Exchange for Swap (EFS) where you exchange the futures contract for a postion in a swap 7) Do an Exchange for Risk (EFR) where you get an interest rate sensitive thing (like a T-bill) for an interest rate contract 8) Default - let the clearinghouse handle it
#5

more than what he bargained for :slight_smile: