Which Statement Is True Regarding a Foreign Currency Option

question 6

Multiple Choice

Which statement is true regarding a foreign currency option?

• A) A foreign currency option gives the holder the obligation to buy or sell foreign currency in the future.
• B) A foreign currency option gives the holder the obligation only sell foreign currency in the future.
• C) A foreign currency option gives the holder the obligation to only buy foreign currency in the future.
• D) A foreign currency option gives the holder the right but not the obligation to buy or sell foreign currency in the future.
• E) A foreign currency option gives the holder the obligation to buy or sell foreign currency in the future at the spot rate on the future date.

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Definitions:

Assessment Catalog

A comprehensive listing or database that includes various tests, tools, or measurements used in evaluating abilities, skills, or knowledge.

Mental Measurement Yearbook

A comprehensive guide that evaluates the reliability and validity of tests in psychology and education.

Buros

An institute known for its critical reviews of commercially available tests through publications like the Mental Measurements Yearbook.