A Foreign Currency ________ Option Gives the Holder the Right

question 69

Multiple Choice

A foreign currency ________ option gives the holder the right to ________ a foreign currency, whereas a foreign currency ________ option gives the holder the right to ________ an option.

• A) call, buy, put, sell
• B) call, sell, put, buy
• C) put, hold, call, release
• D) none of the above

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Definitions:

Fair Values

The estimated market value of an asset or liability, based on current prices in an open and competitive market.

Credit Balance

A situation in accounting where the sum of credits in a ledger account exceeds the sum of debits. It often indicates an amount owed to the account holder.

Contingency Payment

A payment that is contingent upon the occurrence of a specific event, not guaranteed to happen.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation, giving shareholders voting rights and a share in the company's profits via dividends.