Advantages of Currency Futures Contracts Relative to Forward Contracts Include

question 24

Multiple Choice

Advantages of currency futures contracts relative to forward contracts include ______

• A) the ability to trade in any currency
• B) extensive availability of delivery dates
• C) freedom to liquidate the contract at any time before its maturity
• D) More than one of the above
• E) None of the above

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Definitions:

Monetary Unit

The standard unit of currency in which financial transactions are recorded and reported in a company's financial statements.

Settlement Date

The day on which cash is received or paid.

Exchange Rate

The price at which one currency can be exchanged for another, influencing international trade and investments.

Credit Terms

The conditions, including payment deadlines and interest, under which credit is extended by a seller to a buyer.