Which of the Following Is NOT True About a Range

question 1

Multiple Choice

Which of the following is NOT true about a range forward contract?

• A) It ensures that the exchange rate for a future transaction will lie between two values
• B) It can be structured so that it costs nothing to set up
• C) It is constructed from two options and a forward contract
• D) It can be used to hedge either a future inflow or a future outflow of a foreign currency

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Definitions:

Constructive Feedback

Feedback provided in a manner intended to help and encourage the recipient to improve or advance in certain areas.

Receiver

The individual or entity that receives a message or information, playing a critical role in the communication process.

Feedback

A process in which information about the past or the present influences the same phenomenon in the present or future.

React

To respond or act in response to a stimulus or situation.