Currency Futures Contracts Differ from Forward Contracts in That They

question 57

Multiple Choice

Currency futures contracts differ from forward contracts in that they ​

• A)are an obligation.
• B)are not an obligation.
• C)are standardized.
• D)can specify any amount and maturity date.

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Definitions:

Labor Hours

The total number of hours worked by employees for the production of goods or the provision of services.

Inventory Holding Cost

The total cost of storing and managing goods that a company has in stock, including warehousing and insurance.

Forward Buying

Forward buying is a purchasing strategy where buyers purchase larger quantities than immediately needed to take advantage of lower prices or to ensure supply against future shortage.

Market Growth

The increase in the demand or sales of a particular product or service within a specific industry or market over time.