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:

Concrete Operational

A stage in Piaget's theory of cognitive development during which children begin to think logically about concrete events.

Preoperational

Refers to Piaget's stage of cognitive development in children aged 2 to 7, characterized by symbolic thinking, egocentrism, and a lack of logical operations.

Cognitive-Developmental Theory

A theory of psychological development that emphasizes the growth and changes in how people think over time, including understanding the nature of intelligence.

Social-Learning Theory

A theory that suggests people learn new behaviors through observation and imitation of others, rather than through direct experience.