A futures contract is:
A) a negotiable, nonmarketable instrument.
B) a security, like a stock or bond.
C) a standardized, transferable agreement providing for deferred delivery of an asset.
D) not a legal contract, and therefore its terms can be changed.

Question

Quizplus · Accepted Answer

A futures contract is a standardized, transferable agreement that obligates the parties to transact an asset at a predetermined future date and price. It is a legal contract, and its terms are standardized and cannot be changed.

A Futures Contract Is