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)\(\begin{array}{cc}\text { epresents a right rather than a legal } \\
• \text { bligation }
• & \text { Requires up-front fee } \\
• \end{array}\)

---

Definitions:

Talking Distance

The optimal space between individuals while communicating to ensure audibility without compromising personal space, often considered to be within arm's reach.

Tympanic Membrane

The tympanic membrane, or eardrum, is a thin membrane that separates the outer ear from the middle ear and vibrates in response to sound waves.

Nasal Mucosa

The moist, inner lining of the nose which plays a crucial role in filtering, warming, and humidifying the air we breathe.

Critical Thinking

The intentional scrutiny and analysis of an issue for the purpose of reaching a conclusion.