Description of Transaction Type of Market Karl spends $1,500 to buy Google stock options through his online brokerage account. Description of Transaction Type of Market A farmer agrees to sell 10,000 bushels of wheat at the rate of $4.50 per bushel to a buyer in three months. A regulated exchange, such as the Chicago Board of Trade, completes the transaction Futures markets Spot markets Description of Transaction Type of Market Long-term mortgage-backed securities are traded between investors and issuers. Description of Transaction Type of Market Google filed its initial public offering worth $2.7 billion in 2004. Source: CNNmoney.com, Apr. 30, 2004. A hedge fund purchased credit default swaps on securities it did not own because it believed that the securities were likely to default. In this example, the hedge fund is