A Call Currency Option

question 63

Multiple Choice

A call currency option:

• A)obligates the holder to purchase currency or currency futures contracts at a fixed price any time before the option expires.
• B)gives the holder the right to purchase currency or currency futures contracts at a fixed price any time before the option expires.
• C)obligates the holder to sell currency or currency futures contracts at a fixed price any time before the option expires.
• D)gives the holder the right to sell currency or currency futures contracts at a fixed price any time before the option expires.
• E)None of options is correct.

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Definitions:

Variances

Variances refer to the differences between planned, budgeted, or standard costs and the actual costs incurred, indicating deviations in financial and operational performance.

Closing

The process of finalizing accounts at the end of an accounting period by transferring balances to permanent accounts.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials and labor.

Standard Costs

Predetermined costs to manufacture a single unit of product, serving as a benchmark for measuring performance.