What Condition Is Necessary to Create a Synthetic Forward Contract

question 49

Multiple Choice

What condition is necessary to create a synthetic forward contract?

• A)A hedging position.
• B)Exposure to changes in exchange rates
• C)Interest rate parity
• D)Speculating in the market

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Definitions:

Ventral Surface

Refers to the front or belly side of the body or an organ, contrasting with the dorsal or back side.

Acute Glomerulonephritis

A sudden inflammation of the glomeruli, which are small structures in the kidneys that filter waste from the blood.

Severe Edema

An excessive accumulation of fluid in body tissues and cavities, leading to significant swelling, which can be indicative of serious health issues.

Salt

A mineral composed primarily of sodium chloride (NaCl), used in food for flavoring and preservation, as well as in various industrial processes.