Exam 8006 Topic 9 Question 108 Discussion

Actual exam question for PRMIA's 8006 exam
Question #: 108
Topic #: 9
The quote for which of the following methods of physical delivery of a futures contract would be the cheapest?

Suggested Answer: C Vote an answer

Explanation
'In store' delivery is for delivery in a standardized location, and the buyer is handed a 'warrant' that allows him to pick the goods up. This is the cheapest means of physical delivery. The other prices will be higher as they involve more costs for the seller who has to get the goods on board a ship, or to the docks, or insurance and freight as well. Choice 'c' is the correct answer.

by Elton at May 10, 2026, 03:34 PM

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