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27
Who initiates delivery in a corn futures contract
A.The party with the long position
B.The party with the short position
C.Either party
D.The exchange
A.The party with the long position
B.The party with the short position
C.Either party
D.The exchange
Answer: B
The party with the short position initiates delivery by sending a “Notice of Intention to Deliver” to the exchange. The exchange has a procedure for choosing a party with a long position to take delivery.
The party with the short position initiates delivery by sending a “Notice of Intention to Deliver” to the exchange. The exchange has a procedure for choosing a party with a long position to take delivery.
Flashcard info:
Author: CoboCards-User
Main topic: Finance & Investment
Topic: Derivatives
Published: 27.10.2015