Which of the following financial instruments provides a buyer the right (but not the obligation) to purchase or sell a fixed amount of currency at a prearranged price, within a few days to a few years?

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A currency option provides the buyer the right (but not the obligation) to purchase or sell a fixed amount of currency at a prearranged price, within a few days to a few years. A letter of credit is a document issued by a bank that guarantees payment in a commercial transaction. A currency swap involves exchanging one currency for another with the same value at an agreed-upon exchange rate. A forward contract is a non-standardized agreement between two parties to sell or purchase an asset at a specified price at a future date.

Which of the Following Financial Instruments Provides a Buyer the Right