Futures contracts are standardized contracts between two parties to trade financial assets at a future date and in which the terms including the price of the transaction are determined _____
A)today.
B)in the future.
C)by mutual consent.
D)only in equilibrium.

Question

Quizplus · Accepted Answer

Futures contracts have predetermined specifications including the price, quantity, quality, and delivery date. These specifications are standardized and established today, and both parties agree to the terms of the contract. The price of the transaction is determined today and not in the future.

Futures Contracts Are Standardized Contracts Between Two Parties to Trade