A foreign currency option contract traded on U.S.exchanges allows for the sale or purchase of a set amount of
A) U.S. currency at a floating exchange rate
B) U.S. currency at a fixed exchange rate
C) Foreign currency at a floating exchange rate
D) Foreign currency at a fixed exchange rate
E) None of the above

Question

Quizplus · Accepted Answer

A foreign currency option contract allows for the sale or purchase of a set amount of foreign currency at a fixed exchange rate.

A Foreign Currency Option Contract Traded on U