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A Foreign Currency Option Is an Agreement Between a Holder

question 70

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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:

Sociological

Pertains to the study of the development, structure, and functioning of human society.

Psychological

Pertaining to the mind or to mental states and processes; relating to psychology.

Distress Criterion

A measure used in psychology to determine whether an emotional response to a situation is proportionate to the severity of the event.

Disruptive Behavior

Actions that interrupt or hinder proper function or proceedings, often referring to patterns of negative behavior in educational or social settings.

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