A contract giving the owner the right,but not the obligation,to buy or sell an asset at a specified price any time during a specified period in the future is referred to as a(n)
A) interest rate swap.
B) option.
C) futures contract.
D) forward contract.

Question

Quizplus · Accepted Answer

This is the definition of an option contract, which gives the holder the right (but not the obligation) to buy or sell an asset at a specified price (strike price) during a specified period of time (expiration date). Interest rate swaps, futures contracts, and forward contracts have different contractual obligations and features.

A Contract Giving the Owner the Right,but Not the Obligation,to