At the time a futures contract is written:
A)the underlying asset is specifically identified.
B)the buyer pays a good faith deposit to the seller.
C)the current market price of the underlying asset becomes the contract price.
D)the current market price of the underlying asset must be less than the agreed upon futures price.
E)the buyer is granted the right, but not the obligation, to exercise the contract.

Question

Quizplus · Accepted Answer

At the time a futures contract is written, the underlying asset is specifically identified. This is an essential aspect of the contract as it determines the asset that will be delivered or received upon the expiration of the contract.

At the Time a Futures Contract Is Written