What is the recommended approach for traders regarding physical delivery of commodities? Option: "Opt for delivery whenever possible", "Hold positions until expiry for delivery", "Close positions early to avoid delivery", "Request delivery on the expiry date"

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What is the recommended approach for traders regarding physical delivery of commodities?

"Opt for delivery whenever possible"

"Hold positions until expiry for delivery"

"Close positions early to avoid delivery"

"Request delivery on the expiry date"

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Which of the following F&O positions would result in a 'Take Delivery' obligation?

"Long Futures"

"Long ITM Put"

"Short ITM Call"

"Short Futures"

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In the context of physical settlement, what is the obligation of a trader holding a long futures contract at expiry if they choose not to close or roll over their position?

To forfeit the initial margin deposited for the contract

To extend the contract expiry date with additional margin

To pay the full contract value and receive delivery of shares

To sell an equivalent number of shares in the open market

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Which of the following option contracts would result in a physical delivery obligation upon expiry under the physical settlement framework?

Out-of-the-money (OTM) call options

Out-of-the-money (OTM) put options

Both A and B

In-the-money (ITM) call options

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What is the exercise style likely to be for commodity options?

European

American

Bermudan

Asian

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Under physical settlement, what is the obligation of a trader holding a long futures position at expiry?

"To roll over the position to the next expiry"

"To sell the underlying shares in the market"

"To receive the difference between the entry price and settlement price"

"To pay the total contract value and take delivery of shares"