The Primary Advantage of Currency Options Over Forward and Futures

question 20

True/False

The primary advantage of currency options over forward and futures contracts is that they provide a right rather than an obligation to purchase or sell a particular currency at a specified price within a given period.

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Definitions:

Developing Countries

Nations with lower levels of industrialization, lower standards of living, and lower Human Development Index ratings compared to developed countries.

Reliable Source

A credible or trustworthy origin of information or data, often used in research or decision-making.

Source of Electricity

Any process or system that produces electric power, including fossil fuels, nuclear power, and renewable sources like solar, wind, and hydroelectric power.

Human Capital

The capabilities, expertise, and insight that a person or group holds, considered in relation to their worth or expense for a company or nation.