A(n)__________ is a standardized agreement that calls for the delivery of a specific underlying commodity or security at some future date at a currently agreed-upon price.
A) option contract
B) swap
C) futures contract
D) forward contract

Question

Quizplus · Accepted Answer

A futures contract is a standardized agreement that sets the terms for the delivery of a specific underlying commodity or security at a future date at a previously agreed-upon price. Under this agreement, traders can buy or sell commodity or security futures on an exchange. Unlike a forwards contract, a futures contract is standardized, and the exchange holds both buyer and seller accountable for their roles in the agreement.

A(n)__________ Is a Standardized Agreement That Calls for the Delivery