With a ____,Both Parties Agree That Payment Occurs as Long

question 60

Multiple Choice

With a ____,both parties agree that payment occurs as long as exchange rates do not fluctuate outside an agreed-upon range or band.

• A) hedging agreement
• B) payment in the foreign currency
• C) speculation agreement
• D) currency adjustment clause
• E) payment in U.S. dollars

---

Definitions:

Option Contract

A contract which grants the holder the right, but not the obligation, to buy or sell an asset at a specified price on or before a specified date.

Unilateral Contract

is a type of contract where only one party makes a promise or undertakes a performance obligation in exchange for an act by the other party, creating a binding agreement once the act is performed.

Revocable Offer

An offer that can be withdrawn by the offering party before it is accepted by the offeree, typically within a certain time frame.

Unilateral Offer

An offer made by one party where acceptance is performed through an action rather than a promise of action.