Which of the following statements is true?
A)A futures contract is a standardised contract between two parties to deliver and pay for an asset in the future.
B)A futures contract is a non-standardised contract between two parties to deliver and pay for an asset in the future.
C)A futures contract is a standardised contract guaranteed by organised exchanges to deliver and pay for an asset in the future.
D)A futures contract is a non-standardised contract b guaranteed by organised exchanges to deliver and pay for an asset in the future.

Question

Quizplus · Accepted Answer

A futures contract is a type of derivative contract in which two parties agree to buy or sell an asset at a predetermined price and date in the future. The contract is standardised, meaning that the specifications of the asset being traded, the delivery date, and the contract size are all predetermined and regulated by organised exchanges. These exchanges also guarantee the contracts, providing assurance that the delivery of the asset and payment will occur as specified in the contract. Therefore, option C is the correct answer.

Which of the Following Statements Is True