Which of the Following Is the Best Definition of Spot

question 342

Multiple Choice

Which of the following is the best definition of spot trade.

• A) A call or put option that can be exercised on or before its expiration date.
• B) The condition stating that the expected percentage change in the exchange rate is equal to the difference in interest rates.
• C) The condition stating that the current forward rate is an unbiased predictor of the future exchange rate.
• D) Agreements to exchange two securities or currencies.
• E) An agreement to trade currencies based on the exchange rate today for settlement in two days.

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Definitions:

Choice-Of-Language

A contractual provision specifying the language to be used in interpreting the terms of the contract.

Standard Of Care

The degree of attention, caution, and prudence that a reasonable person should exercise in a particular situation.

UCC

For all commercial interactions within the United States, the Uniform Commercial Code (UCC) provides a fully detailed legislative framework.

Merchants

Individuals or businesses engaged in the trade of goods, services, or both to consumers.