The last trading day for an India Gold Quanto Futures contract is:
A.
one business day prior to the last business day of the delivery month
B.
two business days prior to the last business day of the delivery month
C.
the 25th calendar day of the delivery month
D.
four business days prior to the 25th calendar day of the delivery month
The Answer Is:
B
This question includes an explanation.
Explanation:
For India Gold Quanto Futures contracts, the last trading day is defined as two business days prior to the last business day of the delivery month. This rule ensures that there is adequate time for the settlement and adjustment of any open positions before the final day of trading. The two-day buffer also allows for the reconciliation of positions, making the futures market more efficient and reducing the likelihood of disputes regarding settlement. This is in line with global standards for futures contracts where the settlement and final trading days are clearly defined to protect market integrity and investor interests.