A non-cancelable order of a product that specifies the foreign currency price and date of delivery is called a:
A)hedge.
B)derivative.
C)foreign currency firm commitment.
D)international transaction.

Question

Quizplus · Accepted Answer

A foreign currency firm commitment is a non-cancelable order of a product that specifies the foreign currency price and date of delivery. This is a common practice in international business transactions to minimize the risk of fluctuating exchange rates. A hedge is a risk management strategy, a derivative is a financial instrument, and an international transaction can refer to any type of cross-border trade, not just those involving firm commitments.

A Non-Cancelable Order of a Product That Specifies the Foreign