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    Question

    According to the IFSCA Circular on OTC Derivatives on

    Gold and Silver (June 2024), what is the settlement requirement for all OTC derivatives on Gold and Silver?
    A Cash settlement Correct Answer Incorrect Answer
    B Physical delivery Correct Answer Incorrect Answer
    C Derivative swaps Correct Answer Incorrect Answer
    D Hedging with physical assets Correct Answer Incorrect Answer
    E Settlement via commodity exchanges Correct Answer Incorrect Answer

    Solution

    The circular mandates that all OTC derivatives on Gold and Silver must be settled on a cash basis.

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