A currency forward contract specifies all of the following except
A) the amount of currency to exchange.
B) the spot exchange rate.
C) the delivery date on which the exchange will take place.
D) the currencies to be exchanged.

Question

Quizplus · Accepted Answer

A currency forward contract does not specify the spot exchange rate, as this can change between the time the contract is entered into and the delivery date. Instead, it specifies the forward exchange rate, which is agreed upon by both parties at the time of the contract.

A Currency Forward Contract Specifies All of the Following Except