In which market are instruments typically bought and sold for immediate delivery?

The Spot Market is the correct answer because it represents a marketplace where financial instruments, commodities, or assets are bought and sold for immediate delivery and settlement. Transactions in this market typically occur "on the spot," which means that the buyer receives the asset and the seller receives payment almost instantaneously.

In the context of financial markets, the Spot Market is crucial for participants who need immediate access to an asset without any delay in delivery. This immediacy is a defining characteristic that sets it apart from other types of markets, like the Futures Market or the Forward Market, where contracts for future delivery of assets are created but not executed immediately.

In contrast, the Futures Market involves agreements to buy or sell an asset at a specified future date, while the Forward Market functions similarly but typically includes customized contracts traded over-the-counter instead of through an exchange. The Option Market deals with contracts that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specified time frame. Each of these markets serves different purposes and caters to specific trading strategies, but none of them is focused on immediate delivery like the Spot Market.