A(n)________ Is a Right to Exchange a Specific Amount of a Currency

question 109

Multiple Choice

A(n) ________ is a right to exchange a specific amount of a currency on a specific date at a specific rate.

• A) forward contract
• B) currency option
• C) currency hedging
• D) interest arbitrage

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Definitions:

Last Year's Margin

The difference between sales revenue and cost of goods sold from the previous financial year, typically expressed as a percentage of sales.

Division's Turnover

The total revenue generated by a specific division of a company within a given period.

Last Year's Turnover

The total sales or revenues generated by a company during the previous year.

Net Operating Income

The profit generated from a company's usual business operations, excluding taxes and interest.