A Foreign Exchange Option Is

question 58

Multiple Choice

A foreign exchange option is:

• A) the right to engage in buying or selling on the spot market.
• B) the right to purchase or sell foreign currency at a specified price on a specified date in the future.
• C) when the price of foreign currency exceeds the spot rate.
• D) when a speculator must decide whether to move into the market.

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Definitions:

Specific

Clearly defined or identified; distinguished by particular attributes or characteristics that set it apart from others.

Relevant

Pertains to something closely connected or appropriate to what is being done or considered.

Aspirational

Pertaining to products, brands, or lifestyles that consumers admire and desire to obtain, often because they symbolize a higher social status or idealized self-image.

Time-Specific

Refers to strategies, actions, or goals that are planned with a particular time frame in mind.