Which Is True of Foreign Currency Forward Contracts and Foreign $\begin{array}{cc} \text {Foreign currency forward contracts}& \text {Foreign currency options } \\\end{array}$

question 72

Short Answer

Which is true of foreign currency forward contracts and foreign currency options? $\begin{array}{cc} \text {Foreign currency forward contracts}& \text {Foreign currency options } \\\end{array}$
A) $\begin{array}{cc} \text { Requires up-front fee } &&&&&&& \text { Requires up-front fee } \\\end{array}$
B) $\begin{array}{cc}\text { Party may "walk" if "out of the money" } & \text { Party may "walk" if "out of the money" } \\\end{array}$
C) $\begin{array}{cc}\text { Requires no up-front fee }& &&&&&& \text { Party may "walk" if "out of the money" } \\\end{array}$
D) $\begin{array}{cc}\text { epresents a right rather than a legal } \\\text { bligation }& \text { Requires up-front fee } \\\end{array}$

• A) \(\begin{array}{cc}
• \text { Requires up-front fee } &&&&&&& \text { Requires up-front fee } \\\end{array}\)
• B)\(\begin{array}{cc}\text { Party may "walk" if "out of the money" } & \text { Party may "walk" if "out of the money" } \\\end{array}\)
• C)\(\begin{array}{cc}\text { Requires no up-front fee }& &&&&&& \text { Party may "walk" if "out of the money" } \\\end{array}\)
• D)\(\begin{array}{cc}\text { epresents a right rather than a legal } \\
• \text { bligation }
• & \text { Requires up-front fee } \\
• \end{array}\)

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