In an agreement to exchange dollars for euros in three months at a price of $0.90 per euro,the price is the

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The forward exchange rate is the price agreed upon in a contract to exchange currencies at a future date. In this scenario, the agreement to exchange dollars for euros in three months at a price of $0.90 per euro is a forward exchange rate. The spot exchange rate refers to the current exchange rate at the time of the transaction, the money exchange rate is a general term that can refer to different aspects of foreign exchange, and a fixed exchange rate refers to a system where a country's currency is tied to a specific value of another currency or commodity.

In an Agreement to Exchange Dollars for Euros in Three