What Condition Is Necessary to Create a Synthetic Forward Contract

question 49

Multiple Choice

What condition is necessary to create a synthetic forward contract?

• A)A hedging position.
• B)Exposure to changes in exchange rates
• C)Interest rate parity
• D)Speculating in the market

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Definitions:

True-To-False Transition

A true-to-false transition is a change in state or condition from 'true' (active or high) to 'false' (inactive or low) in digital operations or logical processes.

Alarm Output

A signal or notification generated by a system in response to a detected abnormal condition, aimed at alerting personnel to take corrective action.

Temperature Switch

A switch that operates based on the temperature, either turning on or off when a specific temperature threshold is reached.

Manual Automatic

A system or process that can be operated either manually by a human operator or automatically by a machine or software without human intervention.