Question

Investing in futures is

a. investing in physical goods
b. entering into contracts for future delivery
c. executing contracts for prior delivery
d. selling a contract in anticipation of

Answer 1

b. entering into contracts for future delivery

Step-by-step explanation:

Investing in futures is entering into contracts for future delivery. This is because a futures contract - which can be about various different assets such as equities, bonds, cryptocurrency, or even other physical assets such as corn or wheat - are contracts that you enter expecting prices to rise in the future and which you can sell when the contract matures.