A CME contract on €125,000 with September delivery
A)is an example of a forward contract.
B)is an example of a futures contract.
C)is an example of a put option.
D)is an example of a call option.

Question

Quizplus · Accepted Answer

A CME contract with a specific delivery month (September) is a futures contract. Forward contracts are similar to futures contracts, but they are not standardized and are traded over-the-counter. Put and call options give the buyer the right, but not the obligation, to sell or buy an underlying asset at a predetermined price before or on a specific date.

A CME Contract on €125,000 with September Delivery