A Contract That Provides the Right,but Not the Obligation,to Buy

question 14

Multiple Choice

A contract that provides the right,but not the obligation,to buy or sell a given amount of currency at a fixed exchange rate on or before the maturity date is called an ______.

• A) Excise option
• B) Foreign currency option
• C) Foreign currency swap
• D) Hedge contract

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Definitions:

Belief in a Just World

The assumption that the world is fair and people get what they deserve, influencing one’s response to injustices.

Authoritarianism

A governing system characterized by strong central power and limited political freedoms, often with enforced obedience to authority.

Reciprocity Norm

A social expectation that people will respond to each other in kind, repaying positive actions with positive actions and fostering mutual aid and cooperation.

Rule of Law

The idea that all individuals and organizations are accountable under laws that are impartially applied and enforced.