The purchase of a futures contract gives the buyer ________.
A) the right to buy an item at a specified price
B) the right to sell an item at a specified price
C) the obligation to buy an item at a specified price
D) the obligation to sell an item at a specified price

Question

Quizplus · Accepted Answer

The purchase of a futures contract gives the buyer the obligation to buy an item at a specified price. This means the buyer is obligated to take delivery of the asset underlying the futures contract on the specified date at the specified price.

The Purchase of a Futures Contract Gives the Buyer ________