A contract in which the buyer and seller agree to transfer ownership of an asset and cash at some time in the future,but with the price fixed at the time the contract is written is known as what?
A)A swap agreement
B)A forward contract
C)An options contract
D)A bank- accepted bill

Question

Quizplus · Accepted Answer

A forward contract is a contract in which the buyer and seller agree to transfer ownership of an asset and cash at some time in the future, but the price is fixed at the time the contract is written. In a swap agreement, parties agree to exchange cash flows or assets at a future date. An options contract gives the buyer the right, but not the obligation, to buy or sell an asset at a specified price within a certain period. A bank-accepted bill is a financial instrument used for short-term borrowing.

A Contract in Which the Buyer and Seller Agree to Transfer