n NISM Certifications
VIII NISM Series VIII
Medium

How can an open position in a futures contract be closed?

Practice question from NISM Series VIII - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    It has to be closed compulsorily before maturity

  2. B

    It can be closed by intra day transactions only

  3. C

    It can be closed only at maturity

  4. It can be closed anytime on or before the date of maturity through reversed (square-off) transaction

    Correct answer

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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