Agreements that give the right (but not the obligation) to buy or sell an underlying asset at a specified price at a specified time in the future are known as:
A)forwards.
B)futures.
C)coupons.
D)swaps.
E)options.

Question

Quizplus · Accepted Answer

Options give the holder the right, but not the obligation, to buy (call option) or sell (put option) an underlying asset at a specified price on or before a specified date.

Agreements That Give the Right (But Not the Obligation) to Buy