Which of the Following Is Correct When Contracting Ahead in the Forward

question 11

Multiple Choice

Which of the following is correct when contracting ahead in the forward exchange market?

• A) At contract close you pay either the forward rate that was contracted or the then-current rate.
• B) Contracting ahead is always cheaper than waiting to pay spot rates.
• C) Your cost is locked in from the beginning of the contract, regardless of market changes.
• D) Paying the spot price is safer than contracting forward.

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Definitions:

Genetically Modified

Organisms whose genetic material has been altered using genetic engineering techniques.

Pesticides

Chemicals used to kill or control pests in agriculture, such as insects, weeds, or fungi, to protect crops and enhance productivity.

Environmental Degradation

The deterioration of the natural environment due to human activity, leading to the depletion of natural resources and loss of biodiversity.

Agriculture

The act of working the land, growing food plants, and breeding animals for human needs and dietary purposes.