Which of the following are contracts that give the holder the right, but not the obligation, to buy or sell an underlying asset at a pre-specified price for a specified time period?
A)Options.
B)Futures.
C)Forwards.
D)Swaps.
E)All of the above.

Question

Quizplus · Accepted Answer

Only options give the holder the right, but not the obligation, to buy or sell an underlying asset at a pre-specified price for a specified time period. Futures, forwards, and swaps all require an obligation to either buy or sell the underlying asset.

Which of the Following Are Contracts That Give the Holder