Which of the Below Statements Is FALSE

question 3

Multiple Choice

Which of the below statements is FALSE?

• A) The Eurocurrency market is the name of the unregulated and informal market for bank deposits and bank loans denominated in a currency other than that of the country where the bank initiating the transaction is located.
• B) Just like a forward or futures contract, an option gives the option buyer the opportunity to benefit from favorable exchange rate movements but establishes a maximum loss.
• C) Foreign-exchange futures contracts for the major currencies are traded on the International Monetary Market (IMM), a division of the Chicago Mercantile Exchange.
• D) The two types of foreign currency options are options on the foreign currency and futures options.