Non-standardized contracts between two parties to trade assets at a future date and in which the terms (including the price) of the transaction are determined today are usually referred to as
A)forward contracts.
B)futures contracts.
C)options.
D)swaps.

Question

Quizplus · Accepted Answer

Forward contracts are non-standardized contracts between two parties to trade assets at a future date and in which the terms of the transaction are determined today. Futures contracts, options, and swaps are all standardized contracts with specific terms and conditions already established.

Non-Standardized Contracts Between Two Parties to Trade Assets at a Future