Which of the following Derivatives Contract giveS the buyer/ holder of the contract the right (but not the obligation) to buy/sell the Underlying asset at a predetermined price within or at end of a specified period?

Which of the following Derivatives Contract giveS the buyer/ holder of

1.	Which of the following Derivatives Contract giveS the buyer/ holder of the contract the right (but not the obligation) to buy/sell the Underlying asset at a predetermined price within or at end of a specified period?
Answer» Option contracts Future contracts Swap contracts Forward contracts Solution :There are THREE basic types of contracts-OPTIONS, SWAPS and futures/forward contracts-with VARIATIONS of each Options Contract is a type which Derivatives Contract which gives the buyer/holder of the contract the right (but not the obligation) to buy/sell the underlying asset at a predetermined price within or at end of a specified PERIOD. The buyer/holder of the option purchase the right from the seller/writer for a consideration which is called the premium.