Which of the Following Is Correct When Contracting Ahead in the Forward

question 70

Multiple Choice

Which of the following is correct when contracting ahead in the forward exchange market?

• A) At contract close you pay either the forward rate that was contracted or the then-current rate.
• B) Contracting ahead is always cheaper than waiting to pay spot rates.
• C) Your cost is locked in from the beginning of the contract, regardless of market changes.
• D) Paying spot price is safer than contracting forward.

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Definitions:

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Pertaining to or decorated with beads; often used in reference to jewelry, clothing, and adornments.

Yupik Eskimo

Indigenous people from the western, southwestern, and southcentral Alaska and the Russian Far East, known for their unique culture and subsistence lifestyle.

Ceremonial Tradition

Practices and rituals performed on significant occasions or to honor cultural, religious, or social norms and values.

Whale

Marine mammals belonging to the order Cetacea, known for their size, intelligence, and as being amongst the largest animals on Earth.