A customized contract between two parties, where settlement takes place on a specific date in future at a price agreed today is called
A customized contract between two parties, where settlement takes place on a specific date in future at a price agreed today is called ___?
[A]Future contracts
[B]Forward contracts
[C]Option contracts
[D]Warrant contracts
Forward contracts
A forward contract is a customized contract between two parties, where settlement takes place on a specific date in future at a price agreed today.