Which Statement Is True Regarding a Foreign Currency Option

question 6

Multiple Choice

Which statement is true regarding a foreign currency option?

• A) A foreign currency option gives the holder the obligation to buy or sell foreign currency in the future.
• B) A foreign currency option gives the holder the obligation only sell foreign currency in the future.
• C) A foreign currency option gives the holder the obligation to only buy foreign currency in the future.
• D) A foreign currency option gives the holder the right but not the obligation to buy or sell foreign currency in the future.
• E) A foreign currency option gives the holder the obligation to buy or sell foreign currency in the future at the spot rate on the future date.

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Definitions:

Task Oriented

Refers to a focus on completing specific goals or tasks rather than on social or emotional aspects in a work context.

Sequencing Influence Tactics

The strategic ordering or timing of influence tactics to maximize their effectiveness in persuading or modifying someone's behavior.

Abrasive Tactic

An aggressive and possibly confrontational strategy used to achieve objectives, often at the expense of relationships with others.

Ingratiation

A psychological technique where an individual attempts to become more likable to others through flattery or other means of manipulation.