A(n)[blank] 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

Futures contracts require the holder to buy or sell a stated commodity at a specified price at a specified time in the future. Warrants give the holder the right to buy stock at a set price, but not necessarily a specified time. Options give the holder the right to buy or sell a stock at a specified price, but not necessarily a specified time. Convertible contracts allow the holder to convert one form of security into another at a specified ratio.

A(n)[blank] Is a Contract That Requires the Holder to Buy