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 today are referred to as financial
A)forward contracts.
B)futures contracts.
C)options.
D)swaps.

Question

Quizplus · Accepted Answer

The definition provided is a clear description of futures contracts. While forward contracts are similar, they are not standardized and are typically tailored to the specific needs of the parties involved. Options and swaps are different types of financial contracts with different characteristics and outcomes.

Standardized Contracts Between Two Parties to Trade Financial Assets at a Future