The currency futures market is conceptually similar to the forward market; that is, to buy futures on the British pound sterling implies an obligation to buy in the future at a pre-specified price.

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Quizplus · Accepted Answer

This statement is true. The currency futures market involves buying or selling a contract that obligates the buyer or seller to exchange a specific currency at a specific price at a future date. This is similar to a forward contract, but futures contracts are traded on an exchange and are standardized in terms of size, expiry date, and settlement procedures.

The Currency Futures Market Is Conceptually Similar to the Forward