How is it possible to have a future based on the S&P500?

1. On the last day there is a final settlement of the difference between the futures price and the actual index.

2. Anyone still holding the security on the final day will receive a proportionate number of shares in an S&P500 index fund.

3. On the last day, there is a final settlement of a combination of the other commodities on the futures market.

4. There is a large fine on anyone who still holds the security on the final day.

Question 5

What often happens to futures at the time of the crop for commodities with a specific well-defined harvest window?

1. They tend to be traded exactly at the expected spot price at the contracts maturity, making it difficult to profit as an investor.

2. Due to defaults, investors could lose a lot of money.

3. They tend to be traded above the expected spot price at the contracts maturity.

4. They tend to be traded below the expected spot price at the contracts maturity.