A financial instrument that provides its holder a right but no obligation to buy or sell a pre-specified amount of a foreign currency at a pre-determined rate is referred to as ____________

Question

Quizplus · Accepted Answer

An Option in finance is a contract that gives the holder the right, but not the obligation, to buy or sell an asset at a predetermined price within, or at the end of, a specified period. This definition directly applies to the scenario described, where the asset in question is a foreign currency.

A Financial Instrument That Provides Its Holder a Right but No