So, futures are an agreement to buy or sell a specified quantity of a specified asset on a future date for a specified price, standardized contracts, trading on stock exchanges. Unlike forwards, they are hardly settled and deliveries are rare. It is said that only 2% of agricultural futures are settled. And, settlement dates of futures contracts, at which delivery occurs, are in March, June, September, and December.
When there is a specified date, how can a future contract just roll over every-time when a long and short parties take offsetting positions? I am just very confused about the delivery dates. What happens to the delivery dates when they are nearing?
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Nupur Mahajan
nupur1188@...Hartford CT United States
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