A(n)______ contract is an agreement which provides for the delivery of a given amount of something at a given time in the future at a given price.

Question

Quizplus · Accepted Answer

The description provided fits the definition of a futures contract, which is a standardized agreement to buy or sell an asset (such as commodities, currencies, or securities) at a future date and at a price agreed upon at the time of the contract. The delivery of the asset is specified in the contract, but most futures contracts are settled in cash rather than physical delivery. Seasonal contracts may refer to agreements related to specific seasons, but they do not necessarily involve the delivery of goods or services at a future date. Options contracts give the buyer the right but not the obligation to buy or sell an asset, and they also have a specific expiration date.

A(n)______ Contract Is an Agreement Which Provides for the Delivery