A futures contract is a _____ ; an option is a _____ .
A) right, promise.
B) promise, right.
C) promise, promise.
D) right, right.

Question

Quizplus · Accepted Answer

A futures contract is a binding agreement to buy or sell an asset at a predetermined future date and price, making it a promise. An option gives the holder the right, but not the obligation, to buy or sell an asset at a predetermined price before or at the expiration date, making it a right.

A Futures Contract Is a _____ ; an Option Is