Trader a Has Agreed to Give 100,000 U

question 48

Multiple Choice

Trader A has agreed to give 100,000 U.S.dollars to Trader B in exchange for British pounds based on today's exchange rate of $1 = £0.62.The traders agree to settle this trade within two business day.What is this exchange called?

• A)swap
• B)option trade
• C)futures trade
• D)forward trade
• E)spot trade

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Definitions:

Merchants

Individuals or entities involved in the wholesale or retail purchase and sale of goods, often specialized in a particular trade or business.

Standardized Forms

Pre-designed documents with uniform format and content used across various transactions or processes for efficiency and consistency.

Materially Alter

In contract law, it refers to a change that significantly affects the rights or obligations of the parties involved.

Acceptance

The act of agreeing to the terms of an offer, forming the basis of a contract.