A "time option" is an outright forward FX transaction where the customer:
A) has the option to fulfill the outright forward or not at maturity
B) may freely choose the maturity, given a 24-hour notice to the bank
C) can choose any maturity within a previously fixed period
D) may decide to deal at the regular maturity or on either the business day before or after

Question

Quizplus · Accepted Answer

A time option is an outright forward transaction where the customer can choose any maturity within a previously fixed period. This fixed period could be days or weeks, depending on the agreement between the customer and the bank. The customer has the option to select a maturity date that suits their needs, giving them greater flexibility compared to a regular outright forward transaction where the maturity is fixed.

A "Time Option" Is an Outright Forward FX Transaction Where