Currency Futures Contracts Differ from Forward Contracts in That They

question 57

Multiple Choice

Currency futures contracts differ from forward contracts in that they ​

• A)are an obligation.
• B)are not an obligation.
• C)are standardized.
• D)can specify any amount and maturity date.

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Definitions:

Liability Reported

The recording of an obligation or debt that a company owes to outside parties in the financial statements.

Balance Sheet

A financial record that lists a corporation's assets, obligations, and the equity held by shareholders at a particular time.

Incremental Borrowing Rate

The interest rate a lessee would have to pay to borrow on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time, providing insight into its financial condition.