Futures position will be zero at contract maturity

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1. The basis in a futures position will be zero at contract maturity.

2. If I have short position in a futures contract, I expect the underlying asset price to.

3. There is no up-front cost in establishing a futures position except margin and brokerage fees.

4. In an over the counter contract (OTC), we actually trade with a clearinghouse.

5. A correctly priced futures contract will have no arbitrage profits.

Reference no: EM131983115

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