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As the Time of Settlement Gets Closer

Question 7

Multiple Choice

As the time of settlement gets closer:


A) The price of the futures contract will diverge from the price of the underlying asset.
B) The price of the futures contract will always be above the price of the underlying asset.
C) The price of the underlying asset and the future's price will show no correlation at all.
D) The price of the futures contract will move in lockstep with the price of the underlying asset.

Correct Answer:

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