Final answer:
Futures can sell a contract without owning the commodity and can settle in cash. Option d.
Step-by-step explanation:
Futures can sell a contract without owning the commodity. In this case, they do not need to borrow or buy the commodity. Instead, they settle in cash option d. When selling a futures contract, the seller is obligated to deliver the commodity specified in the contract at a future date. However, if the seller wishes to exit the contract before delivery, they can offset their position by buying back the contract in the market. This allows the seller to settle the contract in cash without ever owning the commodity.