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Futures contract a
Futures contract
a.
an obligation to defer an agreed transaction with a financial asset
b.
exchange traded derivative instrument
c.
the right to buy or sell financial assets on agreed terms in the future
d.
The right to postpone a transaction with a financial asset to the future
Expert Solution
Option a: Incorrect statement as future contract is not an obligation to defer an agreed transaction
Option b: Correct Option. Future and option contracts are examples of exchange traded derivate instruments.
Option c: Incorrect option. Future contracts are the right to buy or sell underlying assets on agreed terms in the future and not financial assets.
Option d: Incorrect option. Future contracts doesnt deal with postponement of any transaction
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