Which of the Following Statements Relating to the Use of Futures

Multiple Choice

Which of the following statements relating to the use of futures contracts is incorrect?

A) Futures contracts are derivative products that derive from a physical market product.
B) The pricing of futures contracts is based on the price of the underlying market product.
C) Future physical market price changes are offset by a profit or loss in the futures market.
D) Futures contracts are generally closed out by delivery of the physical market product.