Which of the following is NOT true of a futures contract?
A) standardized agreement
B) set price to be bought or sold in the future
C) option to exercise the contract
D) specified quantity of a financial asset to be bought or sold in the future

Question

Quizplus · Accepted Answer

Futures contracts involve an obligation to buy or sell, not an option to exercise the contract. Options contracts, not futures, provide the right (but not the obligation) to buy or sell an asset at a set price.

Which of the Following Is NOT True of a Futures