Foreign currency options
A) are not traded in Canada
B) offer contracts only with six currencies in US
C) can be used to hedge foreign exchange rate risk
D) involve with cash settlement
E) all of the above

Question

Quizplus · Accepted Answer

Foreign currency options are traded in Canada and offer contracts with a variety of currencies beyond the six in the US. They can be used as a tool for hedging foreign exchange rate risk, and typically involve cash settlement. Therefore, all of the given options are correct.

Foreign Currency Options