Which of the Following Is Correct When Contracting Ahead in the Forward

question 11

Multiple Choice

Which of the following is correct when contracting ahead in the forward exchange market?

• A) At contract close you pay either the forward rate that was contracted or the then-current rate.
• B) Contracting ahead is always cheaper than waiting to pay spot rates.
• C) Your cost is locked in from the beginning of the contract, regardless of market changes.
• D) Paying the spot price is safer than contracting forward.

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Definitions:

Secure Sense

A feeling of safety or security often resulting from stable and consistent care, fostering confidence and well-being.

Trust

The confidence or belief in the reliability, truth, ability, or strength of someone or something.

Caregivers

Individuals who provide care and support to others, often family members or clients who are unable to fully care for themselves due to health-related reasons.

Caregivers

Individuals who provide care and support to others, such as children, the elderly, or those with disabilities, often encompassing both paid professionals and unpaid family members.