Which of the Following Is the Difference Between Foreign Currency

question 5

Multiple Choice

Which of the following is the difference between foreign currency options and futures?

• A) Options leave a buyer with the choice of exercising or not exercising; whereas the futures require a mandatory delivery.
• B) Options require a mandatory delivery; whereas the futures leave a buyer with the choice of exercising or not exercising.
• C) Options require daily cash settlements from contract holders; while the futures do not require any daily cash settlements.
• D) Options do not require any daily cash settlements; while the futures require daily cash settlements from contract holders.

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Definitions:

Coordinated Stocking

A strategy where inventory levels across different locations or stages in a supply chain are managed in sync to optimize overall performance and minimize costs.

Sell-in to Sell-through

The process from selling products into retail channels (sell-in) to the actual sale of those products to the end consumers (sell-through).

CRP System

Continuous Replenishment Program, a supply chain management strategy aimed at improving inventory management and enhancing the flow of goods from suppliers to consumers.

Collaboration

The action of working with someone to produce or create something, often seen in business, science, and creative fields.