A variation of a forward contract that is traded daily in a market with many buyers and sellers and does not have a predetermined settlement date is a/an
A)futures contract.
B)swap contract.
C)performance contract.
D)options contract.

Question

Quizplus · Accepted Answer

A futures contract fits the description provided. It is a standardized contract traded on an exchange that specifies the delivery of a particular asset at a certain price and time in the future, but it does not have a predetermined settlement date. The contract is settled daily in a process known as marking-to-market, where profits and losses are settled each day based on the current market price of the underlying asset.

A Variation of a Forward Contract That Is Traded Daily