Which One of the Following Is Correct When Foreign Currency

question 52

Multiple Choice

Which one of the following is correct when foreign currency is bought in the forward market?

• A) A fixed amount is paid when initiating the contract.
• B) A fixed amount is paid at the end of the contract.
• C) The amount to be paid is determined and paid at the end of the contract.
• D) The amount to be paid is determined periodically and paid in installments during the contract.