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

question 70

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 spot price is safer than contracting forward.

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Definitions:

Frankfurt School

A social and philosophical movement in Germany in the early 20th century that focused on the role of culture in maintaining societal power structures, marked by a critical theory of society.

Cultural Studies

An interdisciplinary field of research that examines the cultural norms, practices, and productions to understand societal dynamics.

Critical Theory

A philosophical approach to culture, literature, and art that seeks to confront social, historical, and ideological forces and structures.

Social Control

Mechanisms, strategies, and institutions society uses to regulate individual and group behaviors to conform to and enforce norms and rules.