Final answer:
The S&P 500 index futures contract is a cash delivery contract while the pork bellies contract is an actual delivery contract. A cash delivery involves a financial settlement, whereas an actual delivery includes the transfer of physical goods.
Step-by-step explanation:
The S&P 500 index futures contract is an example of a cash delivery contract. The pork bellies contract is an example of a actual delivery contract. Therefore, the correct answer is B) cash; actual. In the context of futures contracts, a cash delivery, also known as cash settlement, is a process where the contract value is settled through financial payment, rather than the delivery of physical goods. This is common in index futures, like the S&P 500, because the index itself is not a physical commodity that can be delivered.
On the other hand, an actual delivery contract involves the physical delivery of the underlying asset upon the expiration of the futures contract. Commodities like pork bellies involve the transfer of the physical goods from the seller to the buyer. This is typical for agricultural and other tangible commodities where the quality and condition of the product matter.