What Kind of Trade Involves Agreeing Today on an Exchange

question 40

Multiple Choice

What kind of trade involves agreeing today on an exchange rate for settlement in future?

• A) Spot trade.
• B) Futures trade.
• C) Forward trade.
• D) Triangle trade.

---

Definitions:

Break Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and equipment leases, remaining constant regardless of how much a company produces.

Contribution Margin

The amount by which the sale of a product or service exceeds variable costs, indicating how much it contributes to covering fixed costs.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.