Which of the following statement(s) about the currency forward market is (are) true?
A)In the forward market you buy or sell currency for future delivery at a rate set today.
B)In the forward market you buy or sell currency for future delivery at a rate set today and a forward market transaction is usually a made-to-order transaction.
C)A forward market transaction is usually a made-to-order transaction and most forward transactions are settled in six months or less.
D)In the forward market you buy or sell currency for future delivery at a rate set today, a forward market transaction is usually a made-to-order transaction, and most forward transactions are settled in six months or less.

Question

Quizplus · Accepted Answer

All three statements are true. In the forward market, a buyer and a seller agree today on a price at which a currency will be bought or sold on a specified future date. This transaction is usually specific to the buyer and seller and is tailored to their specific needs. Most forward transactions have a maturity of six months or less.

Which of the Following Statement(s) About the Currency Forward Market