A futures contract is an agreement that specifies the delivery of a commodity or financial security at a:
A) predetermined future date, with a price to be negotiated at the time of delivery.
B) predetermined future date, with a currently agreed-on price.
C) currently agreed-on price, with a delivery date to be negotiated later.
D) predetermined future date, with a price and delivery to be negotiated later.

Question

Quizplus · Accepted Answer

A futures contract specifies a predetermined future date for delivery of a commodity or financial security, with a currently agreed-on price set at the time of the contract. The price is typically based on market prices at the time of the contract, with the goal of managing risk for both buyers and sellers.

A Futures Contract Is an Agreement That Specifies the Delivery