A Foreign Currency Option Contract Traded on U

question 85

Multiple Choice

A foreign currency option contract traded on U.S.exchanges allows for the sale or purchase of a set amount of

• A) U.S. currency at a floating exchange rate
• B) U.S. currency at a fixed exchange rate
• C) Foreign currency at a floating exchange rate
• D) Foreign currency at a fixed exchange rate
• E) None of the above

---

Definitions:

Primary State

The initial or foundational level of government authority in a country, often responsible for key areas such as law enforcement and taxation.

Progressive Tax

A rephrased definition: A taxation system where the tax rate escalates as the taxable income or base increases, ensuring those with greater financial resources bear a larger portion of the tax burden.

Diagram

A graphical representation designed to illustrate the structure or workings of an object, system, or concept.

Lines

In a mathematical or economic context, lines represent relationships between variables, often used in graphs to show trends, constraints, or functions.