Start learning →

Exchange limits on position size tighten close to expiry mainly to:

ALimit volatility at expiry
BRaise the brokerage
CIncrease the leverage
DReduce spot activity
Answer & Solution
Correct answer: A. Limit volatility at expiry
Strict limits on exposure near expiration reduce volatility around final settlement.
Practise this question with Quill — CA Final →

Keep practising Futures Contract

Browse all Futures Contract questions for CA Final, or explore more Strategicfinancialmanagement topics.

Start a Futures Contract lesson →
Related questions