Saturday, November 19, 2011

What price are futures contracts delivered at?

For example, say I take a long position in a futures contract in gold at $700, and the expiration date comes around and the spot and futures prices have converged at $750. If I am going to take delivery on the gold, do I have to pay $700 or $750 an ounce for it?|||in your example you would pay the remainder of the price of the original contract at $700/oz you would be taking delivery of gold worth $750/oz.

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