The Forward Market

question 21

Multiple Choice

The forward market

• A)involves contracting today for the future purchase of sale of foreign exchange at the spot rate that will prevail at the maturity of the contract.
• B)involves contracting today for the future purchase of sale of foreign exchange at a price agreed upon today.
• C)involves contracting today for the right but not obligation to the future purchase of sale of foreign exchange at a price agreed upon today.
• D)none of the options

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Definitions:

Positively

An attitude or manner that is optimistic and constructive, often contributing to favorable outcomes.

Adjustment Refusal

A response denying a request for modification, compensation, or correction in a business setting.

Common Agreement

A common agreement refers to a mutual understanding or consensus reached by two or more parties.

Free Use

The allowance to use content, material, or facilities without restrictions or payment, often within certain legal or ethical limits.