A futures contract is:
A) a contract to buy or sell commodities at some point in the future at a predetermined price.
B) a contract to rent a resource for a specified period with the option of buying it at the end of the lease.
C) an investment security whose value depends on the prices of several other securities.
D) the rate at which one currency trades for another currency.

Question

Quizplus · Accepted Answer

A futures contract is an agreement or contract between two parties to buy or sell a specific commodity or financial instrument at a predetermined price and date in the future. Commodity futures are contracts that specify the delivery of a particular commodity at a certain price on a specific date in the future.

A Futures Contract Is