Forward transactions · Question 8 of 12

What characterises a future?

1 answer is correct. Easy

Show answer

Answer

  • B Both sides are obliged to buy and sell at the agreed price

Explanation

Unlike options, a future involves no choice; both sides are bound. Futures are traded in standardised form on derivatives exchanges such as Eurex. Many futures are not physically settled but settled in cash.

Certifications & exams

Which exam comes next?

You can already practise for 19 exams, and 21 are up for a vote. See all certifications with their official information, cast your vote or suggest your exam.

See all certifications