An agreement made today regarding the terms of a trade that will take place at a later date is called a(n) ___________.
A) convertible
B) futures
C) stock
D) option
E) derivative

Question

Quizplus · Accepted Answer

A futures contract is an agreement made today but the trade will take place at a later date. It is a standardized contract that involves the buying or selling of an underlying asset at a predetermined price and time in the future. The underlying assets can be commodities, currencies, indices, stocks, etc.

An Agreement Made Today Regarding the Terms of a Trade