Do commodity futures actually get delivered?

The difference between a nearby futures price and the price of the physical commodity is the basis. Not all commodity futures have a delivery mechanism. Some are cash-settled on the last trading or expiration day of the contract. For example, Feeder Cattle futures have no delivery mechanism.

What are the types of commodity options?

Commodity Options are of two types: Call Options and Put Options. A Call option gives the buyer of the contract the right to buy the underlying whereas a Put option gives the buyer the right to sell the underlying. Commodity Options can also be categorized into American and European based on exercise. American options can be exercised anytime ...

What does the commodity futures trading commission do?

The Commodity Futures Trading Commission (CFTC) is an independent federal agency that regulates the derivatives markets, including futures contracts, options, and swaps, in the United States. Its goals include the promotion of competitive and efficient markets and the protection of investors against manipulation, abusive trade practices, and fraud.