A Foreign Currency Option Is an Agreement Between a Holder

question 70

True/False

A foreign currency option is an agreement between a holder (corporation) and a writer (commercial bank) that gives the holder the right to buy or sell a certain amount of foreign currency at any time through some specified date.

---

Definitions:

Vowel

A letter of the alphabet representing a speech sound made without significant constriction of the flow of air from the lungs.

Combining Forms

Parts of words (often derived from Greek or Latin) that carry specific meanings and are used in the construction of medical and scientific terminology.

Suffix

A linguistic element added to the end of a word to form a derivative or change its grammatical function.

Consonant

A speech sound produced by partially or completely obstructing the flow of air through the vocal tract, characterized by less resonance and more restriction than vowels.