A feature of currency option that distinguishes it from other derivatives is
A) It carries premium to be paid up front.
B) It is optional to enter into the contract.
C) The buyer has only right, but no obligation to execute the contract
D) The seller has the right, but no obligation to execute the contract.
Correct Answer:
Verified
Q11: Determination of forward rates is explained by
A)Uncovered
Q12: According to International Fisher Effect
A)Forward Premium for
Q13: Cash and carry arbitrage explains the determination
Q14: The marking to market in respect of
Q15: For the balance kept in the margin
Q17: The following statement with respect to currency
Q18: For contingency exposure of foreign exchange, the
Q19: The strike price under an option is
A)The
Q20: An option at-the-money when
A)The strike price is
Q21: Where an option is out of the
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