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:

Appeal

The process of challenging a court's decision in a higher court, seeking a review and potential reversal or modification of the lower court's ruling.

Review

A critical evaluation or analysis of something, such as a publication, performance, or financial account, often for the purpose of informing decisions or improvements.

Appellant

A person who appeals a court's decision, seeking a review and possible reversal of that decision by a higher court.

Appeal

A legal procedure in which a case is brought before a higher court for review of the lower court's decision.