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:

Positive Expectations

The belief or outlook that future outcomes will be favorable or beneficial, often influencing motivation, performance, and the approach to tasks or goals.

Work/Life Balance

The equilibrium between personal life and career demands, emphasizing the importance of prioritizing both areas for overall well-being and satisfaction.

Minimize Stress

Strategies or actions taken to reduce the level of strain and tension experienced by individuals.

Flexible Work Time

An arrangement that allows employees to vary their working hours and schedules, often to accommodate personal needs.