The Difference Between the Spot and Forward Rate Is

question 2

Multiple Choice

The difference between the spot and forward rate is

• A) deferred until Lewis receives payment from the British importer.
• B) taken to the income statement when the contract is entered into.
• C) an adjustment to retained earnings.
• D) adjusted for foreign exchange gains and losses over the life of the contract.

---

Definitions:

Customer

Someone who pays for a product or service.

Geoffrey Moore

An American organizational theorist, management consultant, and author known for his work on the technology adoption life cycle and marketing strategies for high-tech products.

Chasm

A significant gap or barrier that must be overcome, often used metaphorically in business and technology adoption contexts.

Technology Adoption Life Cycle

A model in sociology which explains how a new product or innovation is adopted or accepted, based on the demographic and psychological traits of specific groups of adopters.