When two parties agree to the sale of some asset or commodity on some specified future date at a price specified today it is a/an
A)forward contract.
B)swap contract.
C)performance contract.
D)options contract.

Question

Quizplus · Accepted Answer

A forward contract is an agreement between two parties to buy or sell an asset or commodity at a predetermined future date and at a price agreed upon today. This futures contract is an obligation to both the buyer and the seller, as they are obligated to fulfill the contract at the agreed-upon date and price.

When Two Parties Agree to the Sale of Some Asset