In a _____ Contract You Can Effectively Lock in the Price

question 2

Multiple Choice

In a _____ contract you can effectively lock in the price at which you buy or sell a foreign currency at a set date in the future.

• A)securities spot
• B)covered arbitrage
• C)currency futures
• D)spot foreign exchange

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Definitions:

Reports Income

The process of declaring income received during a tax year on one's tax return.

Taxpayer

A person or organization required to remit taxes to governmental bodies at any level, including federal, state, or municipal.

Tax Liability

The amount of total tax debt owed by an individual or entity to the taxing authority, such as the IRS, after all deductions, credits, and exemptions.

Taxable Qualified Dividend

Dividends that meet certain criteria set by the IRS to be taxed at the lower long-term capital gains tax rates.