Which of the following statement(s) about currency forward market is (are) true?
I. In the forward market you buy or sell currency for future delivery at a rate set today.
II. A forward market transaction is a made-to-measure transaction.
III. Most forward transactions are for six months or less.

Question

Which of the following statement(s) about currency forward market is (are) true?
I. In the forward market you buy or sell currency for future delivery at a rate set today. 
II. A forward market transaction is a made-to-measure transaction.
III. Most forward transactions are for six months or less.

Quizplus · Accepted Answer

I is true, as in the forward market, a buyer agrees to purchase currency at a fixed price for delivery on a future date. 
II is true, as parties can agree on specific terms such as settlement date, amount, and currency pair. 
III is true, as most forward contracts have a maturity of six months or less.

Which of the Following Statement(s) About Currency Forward Market Is