A futures contract provides the holder with the option to buy or sell a stated contract involving a commodity or financial claim at a specified price over a stated time period.

Question

Quizplus · Accepted Answer

A futures contract obligates the holder to buy or sell a stated asset at a specified price on a specified future date, unlike an option, which provides the right but not the obligation to buy or sell.

A Futures Contract Provides the Holder with the Option to Buy