A Forward Foreign Exchange Contract ______

question 12

Multiple Choice

A forward foreign exchange contract ______.

• A) allows a transfer of purchasing power from one currency to another on a predetermined date and at a predetermined exchange rate
• B) is a long (or forward) position in a foreign currency
• C) is a type of option that can be used to hedge against unfavorable changes in foreign currency values at the discretion of the option holder
• D) is priced to equal the spot exchange rate
• E) None of the above

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Definitions:

Carbon

A chemical element with symbol C, capable of forming many compounds including carbon dioxide and organic molecules.

Atmosphere

The layer of gases surrounding a planet or celestial body, gravitationally bound to it, and essential for many life forms.

Ocean

The ocean is a vast body of saltwater that covers more than 70% of the Earth's surface, important for climate regulation, transportation, and providing a habitat for countless species.

Biogeochemical Cycles

These are natural pathways by which essential elements of living matter are circulated through the biotic (living) and abiotic (non-living) components of the Earth.