Question: : Select the correct answer and explain A futures contract: a. is an agreement to buy or sell a specified amount of an asset at

: Select the correct answer and explain

A futures contract:

a. is an agreement to buy or sell a specified amount of an asset at the spot price on the expiration date of the contract.

b. is an agreement to buy or sell a specified amount of an asset at a predetermined price on the expiration date of the contract.

c. gives the buyer the right, but not the obligation, to buy an asset some time in the future.

d. is a contract to be signed in the future by the buyer and the seller of the commodity.

e. None of these is correct.

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