Standardized contracts that give the buyer the right but not the obligation to buy financial assets in the future at a price set today are which of the following?
A)financial forward agreements
B)financial option agreements
C)financial futures agreements
D)financial swaps

Question

Quizplus · Accepted Answer

The description matches that of financial option agreements, which give the buyer the right but not the obligation to buy financial assets in the future at a price set today. Financial forward agreements involve an obligation to both parties, while financial futures agreements involve the actual exchange of assets at a future date. Financial swaps involve the exchange of financial assets between parties with different types of interest rates, currencies, or securities.

Standardized Contracts That Give the Buyer the Right but Not