What does the holder of a put option on foreign currency have the right to do?
A)Right to buy the currency
B)Right to sell the currency
C)Right to do a currency swap
D)Right to acquire a forward contract

Question

Quizplus · Accepted Answer

The holder of a put option on foreign currency has the right to sell the currency at a predetermined price (strike price) within a specified period of time. This is useful for investors who want to protect themselves against a decline in the value of a foreign currency they hold or who want to profit from a potential depreciation in value.

What Does the Holder of a Put Option on Foreign