πŸ“’ Too many exams? Don’t know which one suits you best? Book Your Free Expert πŸ‘‰ call Now!

  • google app store apple app store
  • βœ–

      Question

      An agreement to buy/sell a financial instrument at a

      fixed future date, that is sold over an exchange, is a/an ________
      A Spot Contract Correct Answer Incorrect Answer
      B Forward Contract Correct Answer Incorrect Answer
      C Futures Contract Correct Answer Incorrect Answer
      D Option Contract Correct Answer Incorrect Answer
      E All of the above Correct Answer Incorrect Answer

      Solution

      A futures contract is more standardized, formalized and a legally binding agreement to buy/sell a commodity or a financial instrument at a pre-specified future date and at a price agreed upon today. These contracts are typically traded at an exchange.

      Practice Next

      Relevant for Exams:

      ask-question