To Purchase a Stated Number of Units of the Underlying

question 55

Multiple Choice

To purchase a stated number of units of the underlying foreign currency at a specific price per unit during a specific period of time is called a/an

• A) put option.
• B) market option.
• C) call option.
• D) operating option.

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Definitions:

Closed Economy

An economic system that does not engage in international trade, with no exports or imports, relying solely on domestic production and consumption.

Japan

An island country in East Asia, known for its rich culture, technological advancements, and significant economic power.

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity (like producing a good or service) more efficiently than another activity.

Rice and T-shirts

Representative commodities in discussions of global trade and economy, illustrating basic needs (food) and global manufacturing (apparel).