The Forward Market

question 94

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 above

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Definitions:

Direct Marketing

A type of advertising strategy that seeks to deliver a message directly to consumers, through methods such as mail, email, or phone calls, without intermediaries.

Customer Databases

Collections of information about customers, including their contact details, buying habits, and preferences, which companies use to manage customer relationships effectively.

Marginal Costs

The extra expense associated with the production of an additional unit of a product or service.

Average Cost

The total cost of production divided by the quantity of output produced, representing the per unit cost of production.