The Biggest Advantage to Purchase Foreign Currency Using the Forward

question 51

Multiple Choice

The biggest advantage to purchase foreign currency using the forward rate is to

• A) Earn a premium on the exchange
• B) Lock into a price now
• C) Gain from future price reductions
• D) Avoid the more expensive spot rates
• E) All of the above

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Definitions:

God

The supreme being, creator, and principal object of faith in monotheistic religions.

True Triangle

A geometric concept referring to a three-sided polygon that meets the exact mathematical properties and definitions of a triangle, including internal angles summing to 180 degrees.

Plato's Theory

Refers to the philosophical ideas of Plato, including his Theory of Forms which posits that the physical world is only a shadow of the true reality, the eternal world of forms.

Forms

In Platonic philosophy, the abstract, perfect, unchangeable concepts or ideals that transcend the physical world and embody the fundamental essence of reality.