delivery time for futures and forwards

[romshes77]

David, question - in the bottom of page 32 (Products) you say : “Moreover whereas Futures contracts are often closed out prior to delivery, forward contracts usually do lead to delivery – and the delivery is typically specified to be a range of days, rather than a specific date, as for the Futures.”
And then on page 33 for Q12.2.1 you specify Option 1 as correct - “feature of a futures contract - a range of delivery dates”
Can you comment on this inconsistency please?
Thank you !!
Roman.

 

[David Harper CFA FRM]

Hi romshes77,

Yes, good catch. Apologies, the sentence in the summary is incorrect, getting delivery reversed, it should read "whereas Futures contracts are often closed out prior to delivery, forward contracts usually do lead to delivery – and the delivery is for a specific date, rather than range of days which is typical for a Futures contract.”
i.e., the question Q12.1.1 looks correct to me

I have noted to fix this on revision, thanks for spotting the discrepancy!

 

[romshes77]

Thanks David for a quick response!