What Is a "Strike Price

question 27

Multiple Choice

What is a "strike price?"

• A)the exchange rate that is used to buy a foreign currency today
• B)the price that will be paid for goods in a forward contract
• C)the exchange rate that will be used if a foreign currency option is executed
• D)the difference between the wholesale rate and the retail rate for foreign currency exchange

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Definitions:

Free Trade Association

A group of countries that have agreed to eliminate tariffs, quotas, and preferences on most (if not all) goods and services traded between them.

EURO

The official currency of the Eurozone, which is used by 19 of the 27 European Union countries.

Official Currency

The legally established money within a country that is used as a medium of exchange, store of value, and unit of account.

GDP

Gross Domestic Product, the total value of all goods and services produced within a country in a given period, a primary indicator of economic health.