________ Are NOT One of the Three Categories Reported for Foreign

question 5

Multiple Choice

________ are NOT one of the three categories reported for foreign exchange.

• A) Spot transactions
• B) Swap transactions
• C) Strip transactions
• D) Futures transactions

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Definitions:

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price within a specific time period.

Stock Price

The current price at which a share of a company is traded on the stock market, reflecting the value the market places on the company.

Exercise Price

The predetermined price at which an option's holder can buy (for call options) or sell (for put options) the underlying asset.

Put Option

A put option is a financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified period.