An option contract gives the holder the option to buy or sell foreign exchange at a future point in time.

Name: An option contract gives the holder the option to buy or sell foreign exchange at a future point in time.
Brand: Quizplus
Rating: 4.9 (52 reviews)

Question

Quizplus · Accepted Answer

An option contract in the context of foreign exchange (forex) provides the holder the right, but not the obligation, to buy or sell a specific amount of foreign currency at a predetermined price on or before a specified date, allowing for hedging or speculation on currency movements.

An Option Contract Gives the Holder the Option to Buy