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Hi sir, i came across one statement in december 2014 exam.
It states that ” Once purchased, currency futures have a range of close-out dates ”
I dont even understand what this statement is trying to say, therefore it’s difficult for me to evaluate the statement. So could you explain what does this statement mean ?
The wording isn’t so good really, but you can finish the futures deal (i.e. sell the futures) at any time up to the last day of the future. (For March futures, for example, the last day is 31 March).
I do explain this in my free lectures.But in my lecture notes, it showed that this statement ” once purchased, currency futures have a range of close-out date” is incorrect.
In the notes on opentuition , it states that
– delivery dates for futures contracts occur only on 4 dates a year.– futures contracts are traded and can be bought and sold from or to others during the period up to the delivery date.
Therefore, shouldn’t the statement above be true instead ?
What is in the notes is correct.
As I wrote in my previous reply, the wording of the question is poor. The close out date refers to the final date of the future (as opposed to the dates on which you choose to buy or sell).
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