A trader has just agreed to exchange $2 million U.S.dollars for $1.55 million Euros six months from today.This exchange is an example of a:

Name: A trader has just agreed to exchange $2 million U.S.dollars for $1.55 million Euros six months from today.This exchange is an example of a:
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Question

Quizplus · Accepted Answer

This is a forward trade because the exchange of currencies is happening at a future date. In this case, the trade is taking place six months from today.

A Trader Has Just Agreed to Exchange $2 Million U