S3 7.6 Flashcards
1
Q
What % of contracts actually takes delivery?
A
3%
2
Q
Which futures month has the heaviest trading?
A
The SPOT / Current month
3
Q
What is Delivery?
A
Actual tender and receipt of a commodity
4
Q
What is a Delivery Notice?
A
Note given by the seller indicating his intention of making a delivery on the date indicated by the futures contract; delivered by the clearing house
5
Q
When are deliveries paid for?
A
Before 1pm the day of delivery
6
Q
What happens if contract is delivered to client’s satisfaction?
A
Buyer will pay a premium
7
Q
Who decides on on delivery time
A
By the exchange where the commodity trades
