In the case of a ________, both buyer and seller are obligated to perform.

Question

Quizplus · Accepted Answer

In a futures contract, both the buyer and seller are obligated to perform. In a call option contract, the buyer has the right but not the obligation to buy the underlying asset, while in a put option contract, the buyer has the right but not the obligation to sell the underlying asset. Therefore, options contracts are not obligating for both parties.

In the Case of a ________, Both Buyer and Seller