1.One type of derivative is a contract where you agree to buy or sell a specific commodity for a specific price at a predetermined date. The participants in the contract are obligated to make the trade. These contracts are traded on an exchange so there is no counter-party risk.

This is referred to as:

	A.	A futures contract
	B.	A forward contract
	C.	A call
	D.	A put

One type of derivative is a contract where you agree to buy or sell a specific commodity for a specific price at a predetermined date. The participants in the contract are obligated to make the trade. These contracts are traded between two parties, generally institutions like a business and a bank.

This is referred to as:

	A.	A futures contract
	B.	A forward contract
	C.	A call
	D.	A Put