Futures- buying/selling commodities at market driven price in future
Q. Which of the following is known as the concept of a standard contract to buy or sell a specified commodity at a certain date in future and at a market driven price?- Published on 20 Jul 15
a. Forward Contract
b. Futures Contract
c. Market Contract
d. Standard Contract
ANSWER: Futures Contract
Their main purpose is to mitigate risk of default by either party in the intervening period.