What do we call markets where transactions are set for a future date?

The correct answer is the Futures Market, as it refers specifically to a type of financial market where participants can enter into contracts to buy or sell assets at a predetermined price for delivery at a future date. This market enables traders to hedge against price movements or speculate on future price changes of commodities, currencies, or financial instruments.

The concept of a futures market is grounded in the need for price discovery and risk management. By locking in prices today for transactions that will occur later, participants can protect themselves from the volatility of prices in the underlying asset. This mechanism is essential for various industries that rely on goods whose prices fluctuate significantly.

The other options provided represent different market types:

• The Options Market involves contracts that give the holder the right, but not the obligation, to buy or sell an asset at a specified price before a certain date, rather than obligating them to future transactions.
• The Secondary Market is where securities are traded after they have been issued in the primary market, allowing investors to buy and sell existing securities rather than committing to future transactions.
• The Forward Market operates similarly to the futures market, as it also involves contracts for future delivery, but these contracts are usually customized and traded over-the-counter rather than on an exchange.

This distinguishes the futures