A futures contract is an agreement:
A)that obligates a corporation to issue additional securities on a specified date in the future.
B)to exchange financial assets on a specified date in the future with the price determined on that date.
C)to deliver goods today in exchange for an agreed upon payment to be paid on a specified date in the future.
D)to exchange a specified quantity of goods on a specified date in the future at the current market price.
E)to exchange goods on a specified date in the future at a price that is agreed upon today.

Question

Quizplus · Accepted Answer

Futures contracts are agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future. The key characteristic of futures contracts is that the price is agreed upon today, even though the exchange of goods or financial assets takes place in the future.

A Futures Contract Is an Agreement