A Futures Contract Is A

question 53

Multiple Choice

A futures contract is a:

• A) contract that provides a specified commodity or instrument to be bought at a future date at a price determined at the expiry date.
• B) contract that provides a specified commodity or instrument to be bought at a future date at a price decided today.
• C) right to buy a specified commodity or instrument at a price determined today.
• D) right to buy a specified commodity or instrument at a price determined at the expiry date.

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Definitions:

Softball

A team sport similar to baseball but played with a larger ball on a smaller field and notably includes underhand pitching.

Heavy Object

An item possessing a substantial amount of weight, often requiring significant effort to move or lift.

Throwing

The action of propelling something through the air using force from the hands or arms.

Target

An object, goal, or person that is the intended focus of attention, action, or effort.