This is a security formalizing an agreement between two parties to exchange a standard quantity of an asset at a predetermined price on a specified date in the future.

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The description given is that of a derivative security. A derivative security is a financial instrument whose value is based on an underlying asset, which in this case is a standard quantity of an asset to be exchanged at a predetermined price on a specific date in the future.

This Is a Security Formalizing an Agreement Between Two Parties