question_answer

Many times, we read about future trading in newspapers. What is 'future trading'?

I. It is nothing but a trade between any two stock exchanges, wherein it is decided to purchase the stocks of each other on a fixed price throughout the year.

II. It is an agreement between two parties to buy or sell an underlying asset in the future at a predetermined price.

III. It is an agreement between stock exchanges that they will not trade the stocks of each other under any circumstances in future or for a given period of time.

Select the correct answer using the codes given below

A)  Only I            

B)  Only II

C)  Only III           

D)  II and III

E)  None of these