n NISM Certifications
NSM General NISM
Medium

Which of the following is true about a 'Futures Contract'?

Practice question from NISM Series I - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. It is an agreement to buy or sell an asset at a predetermined price on a specific future date

    Correct answer

  2. B

    It is an agreement to buy or sell an asset immediately

  3. C

    It allows only physical delivery of the underlying asset

  4. D

    It is a contract that can only be settled in cash

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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