A(n) ________ is a contract that requires the holder to buy or sell a stated commodity at a specified price at a specified time in the future.

Question

Quizplus · Accepted Answer

The definition provided describes a futures contract. A warrant is a type of security that gives the holder the right to buy the underlying asset at a certain price, while an option is a contract that gives the holder the right (but not the obligation) to buy or sell the underlying asset at a certain price within a certain time frame. A convertible contract is a type of security that can be converted into another security, such as a stock or bond. Therefore, the correct answer is C) futures.

A(n) ________ Is a Contract That Requires the Holder to Buy