Which of the following provides for the purchase of the legal right to buy or sell an asset at an agreed upon price for a set period of time?
A)forward contracts
B)interest rate swaps
C)future contracts
D)traded options

Question

Quizplus · Accepted Answer

Traded options provide for the purchase of the legal right to buy or sell an asset at an agreed upon price for a set period of time. Future contracts and forward contracts are agreements to buy or sell assets at a future date at a predetermined price, but do not provide the right to buy or sell. Interest rate swaps involve exchanging one type of interest rate for another and are not related to the purchase of an asset.

Which of the Following Provides for the Purchase of the Legal