Which one of the following statements is correct?

A) Futures contracts can be closed out by entering a reverse trade.

B) Futures contracts must be held to maturity.

C) Futures contracts can be closed out only by contract buyers.

D) Futures contracts can only be closed out during the week prior to maturity.

----------

The spot price on cocoa is $3,600 a ton. The futures price is $3,520 a ton. The basis is ________ and the market is considered to be in ________.

A) -80; contango

-80; backwardation

C) 80; contango

D) 80; backwardation