This financial instrument (sometimes referred to as a commodity option) permits the holder to buy if a call, or to sell if a put, a specific underlying futures contract at a fixed price up to a specific expiration day
A) forward
B) futures option
C) swap
D) commodity swap
E) futures swap

Question

Quizplus · Accepted Answer

The description matches a futures option, which is an option on a futures contract that gives the holder the right to buy or sell the underlying futures contract at a fixed price until the option's expiration date. The other choices do not fit the description given.

This Financial Instrument (Sometimes Referred to as a Commodity Option)