A Firm Sells a Currency Futures Contract,then Decides Before the Settlement

question 99

Multiple Choice

A firm sells a currency futures contract,then decides before the settlement date that it no longer wants to maintain such a position.  It can close out its position by:

• A) buying an identical futures contract.
• B) selling an identical futures contract.
• C) buying a futures contract with a different settlement date.
• D) selling a futures contract for a different amount of currency.
• E) purchasing a put option contract in the same currency.

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Definitions:

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