As a general statement, it is safe to say that businesses generally use the ________ for foreign currency option contracts, and individuals and financial institutions typically use the ________.
A) exchange markets; over-the-counter
B) over-the-counter; exchange markets
C) private; government sponsored
D) government sponsored; private

Question

Quizplus · Accepted Answer

Businesses typically use exchange markets for foreign currency option contracts as they have larger transaction sizes and require liquidity. Individuals and financial institutions typically use over-the-counter options as they have smaller transaction sizes and can be tailored to individual needs.

As a General Statement, It Is Safe to Say That