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Two entities, Country Produce and True Cereal, met today and agreed to exchange wheat six months from now at a price which they negotiated today.

Two entities, Country Produce and True Cereal, met today and agreed to exchange wheat six months from now at a price which they negotiated today. This agreement was made between the two firms and did not pass through an organized exchange. Which one of the following best describes this transaction?

A) a futures contract
B) the spot market
C) the cash market
D) a forward contract

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