Explanation:
Correct answer: C. The exchange defines the underlying asset (quality), contract size, delivery months, and delivery arrangements
In an exchange-traded futures contract, the exchange standardizes the contract terms. For a wheat futures contract, the exchange specifies the grade/quality of wheat, contract size, delivery months, and delivery procedures/locations.
Why the other choices are false:
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Q-148.2 Which of the following is TRUE about a wheat futures contract?
A
The long can stall but must eventually take delivery of wheat
B
The short can deliver futures on any day of the contract delivery month
C
The exchange defines the underlying asset (quality), contract size, delivery months, and delivery arrangements
D
If the contract was entered into between "Investor A" (long wheat) and "Investor B" (short wheat), then eventual physical delivery must be to the original Investor A