Question 20:

Which of the following statements is correct about futures contract?

A) it is a contract to exchange a specified quantity of goods on a specified date in the future at the current market price.

B) it is a contract to exchange goods on a specified date in the future at a price that is agreed upon today.

C) Future contract is obligation of a corporation to repurchase stocks at a specified date in the future.

D) it is a contract to deliver goods today in exchange for the agreement to pay for these goods on a specified date in the future.

E) Future contract is an agreement to sell financial assets somewhen in the future with the price determined on that date.