As a foreign exchange hedging tool, options have all of the following characteristics EXCEPT
A) the right to buy or sell an amount of foreign currency.
B) specifies price.
C) specifies time period.
D) represents an obligation to buy or sell.

Question

Quizplus · Accepted Answer

Options do not represent an obligation to buy or sell. They give the holder the right, but not the obligation, to buy or sell a certain amount of foreign currency at a specified price during a specified time period.

As a Foreign Exchange Hedging Tool, Options Have All of the Following