A futures contract is:
A) a nonnegotiable, nonmarketable instrument.
B) a security, like stocks and bonds.
C) a standardized transferable agreement providing for the deferred delivery of a specified traded quantity of a commodity.
D) not a legal contract, and therefore its terms can be changed.

Question

Quizplus · Accepted Answer

Futures contracts are standardized, transferable agreements that obligate the buyer to purchase, and the seller to sell, a specific quantity of a commodity at a predetermined price and date. They are traded on futures exchanges and are legal contracts.

A Futures Contract Is