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Who can help me, I can’t understand a problem.
In Dec 2014 paper, question 8, Option A
Why ‘Once purchased, currency futures have a range of close-out dates’ is wrong?
In future, if you wish for me to answer then you should ask in the Ask the Tutor Forum – this forum is for students to help each other.
The close out date is the ‘last day’ of the future. March futures have a ‘last day’ as 31 March, June futures as 30 June, and so on. On the close out date the futures must finish. Therefore any one future only has one close-out date – not a range.
Most futures deals are completed before the close out date – if you have bought futures you can sell them any time up to the close out date. If you have sold futures then you can buy them at any time up to the close out date.
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