Which Statement Is True Regarding a Foreign Currency Option

question 66

Multiple Choice

Which statement is true regarding a foreign currency option?

• A) A foreign currency option gives the holder the obligation to buy or sell foreign currency in the future.
• B) A foreign currency option gives the holder the obligation to only sell foreign currency in the future.
• C) A foreign currency option gives the holder the obligation to only buy foreign currency in the future.
• D) A foreign currency option gives the holder the right but not the obligation to buy or sell foreign currency in the future.
• E) A foreign currency option gives the holder the obligation to buy or sell foreign currency in the future at the spot rate on the future date.

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Definitions:

Event A

A specific occurrence or situation that is designated with the label "A" for identification purposes.

Math Classes

Courses or lessons focused on the study of numbers, quantities, shapes, formulas, and their relationships and uses in the real world.

Science Courses

Academic programs or classes focused on systematic and empirical investigation of the natural world through observation and experimentation.

Event A

Refers to a specific occurrence or outcome in a statistical experiment or observational study.