A Futures Contract Is a Firm Legal Agreement Between a Buyer

Multiple Choice

A futures contract is a firm legal agreement between a buyer and a seller in which:

A) The buyer agrees to take delivery of an asset at a specified price at the end of a designated period of time.
B) The value of the futures contract is derived from the value of the underlying instrument.
C) The seller agrees to make delivery of an asset at a specified price at the end of a designated period of time.
D) a and c only.
E) All of the above.