Financial futures are:
A)a commitment between two parties to trade a financial instrument at a certain rate at a specified time in the future.
B)A call option on a standardized asset at a certain price at a specified time in the future.
C)A put option on a standardized asset at a certain price at a specified time in the future.
D)a commitment between two parties on the price of a standardized financial asset with the final settlement specified time in the future.
E)b.and c.

Question

Quizplus · Accepted Answer

Financial futures are a commitment between two parties on the price of a standardized financial asset with the final settlement specified time in the future. Therefore, options (choices B and C) are not financial futures. Choice A is partially correct but does not specify that it must be at a specified price. Therefore, D is the most appropriate answer.

Financial Futures Are