T or F since there are many grades of corn, the seller of a futures contract may deliver any type of corn

Finance Dec 21, 2020

T or F

since there are many grades of corn, the seller of a futures contract may deliver any type of corn

Expert Solution

The Statement is False

Future contract is a legal agreement to buy or sell a particular commodity or asset or security at a predetermined date.

But in the given case, the seller since there are many grades of corn, the seller may deliver any type of corn is False Since the seller has to deliver the particular corn selected on the date of agreement.

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