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Answer: The settlement price for the most active contract is above the high price for the day.
The reported high price of a futures contract should reflect all prices for the day, so the settlement price should never be greater than the high price. This would indicate a data integrity issue as the settlement price is calculated based on trading activity during the day and should fall within the range established by the high and low prices for that trading session.
Author: LeetQuiz Editorial Team
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An experienced commodities risk manager is examining corn futures quotes from the CME Group. Which of the following observations would the risk manager most likely view as a potential problem with the quotation data?
A
The volume in a specific contract is greater than the open interest.
B
The prices indicate a mixture of normal and inverted markets.
C
The settlement price for the most active contract is above the high price for the day.
D
There is a contract with maturity every month.