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Which of the Following Is True for Forward Foreign Exchange

Question 4

Multiple Choice

Which of the following is true for forward foreign exchange contracts?


A) Common dates for future exchange are 50, 100, and 150 days forward.
B) The actual currency exchange occurs after one week from the stated time period.
C) They are used mostly to offset net asset positions held in the foreign currencies.
D) They can be used for both speculation and hedging.

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