Type of contract which involves exchange of assets will be occurred in future at price settled daily is classified as
A
spot contract
B
forward contract
C
future contracts
D
present contract
Correct Answer: future contracts
Type of contract which involves exchange of assets will be occurred in future at price settled daily is classified as future contracts. A futures contract is a legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future. Futures contracts are standardized for quality and quantity to facilitate trading on a futures exchange.