- CFA Exams
- CFA Level I Exam
- Topic 8. Alternative Investments
- Learning Module 33. Introduction to Commodities and Commodity Derivatives
- Subject 4. Commodity Futures Market Participants
CFA Practice Question
For commodity futures, which form of settlement do most participants take?
B. Closing the futures position
C. Rolling of futures contracts
A. Delivery of the commodity at maturity
B. Closing the futures position
C. Rolling of futures contracts
Correct Answer: B
A typical participant will buy or sell the same amount of contracts before maturity in order to settle with the counterparty.
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