The agreement to provide a standardized commodity to a buyer on a specific date at a specific future price is

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A futures contract is an agreement to buy or sell a standardized commodity at a specific future date and price. This allows both buyers and sellers to lock in a price, reducing their exposure to price fluctuations. Put and call options are contracts giving the holder the right, but not obligation, to sell or buy an asset at a certain price, but they do not involve the sale or purchase of the underlying commodity. A mortgage-backed security is a type of financial instrument that represents a claim on the cash flows from a pool of mortgage loans.

The Agreement to Provide a Standardized Commodity to a Buyer