Futures- buying/selling commodities at market driven price in future

Q.  Which of the following is known as the concept of a standard contract to buy or sell a specified commodity at a certain date in future and at a market driven price?
- Published on 20 Jul 15

a. Forward Contract
b. Futures Contract
c. Market Contract
d. Standard Contract

ANSWER: Futures Contract
 
Their main purpose is to mitigate risk of default by either party in the intervening period.

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