A forward contract on currency:
A) is a way to hedge credit (default) risk.
B) is used to swap fixed interest payments in euros for variable interest payments in dollars.
C) is an agreement between a customer and a bank to exchange one currency for another on a specified date at a specified exchange rate.
D) is an agreement between a customer and a bank to exchange one currency for another on a specified date at whatever the exchange rate is on that day.
Correct Answer:
Verified
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