What is the name of the contract where corporations,institutional investors,and individuals are required to pay or to receive a specific amount of foreign currency at a specific exchange rate at a particular date in the future?

Question

Quizplus · Accepted Answer

A forward currency contract is an agreement where parties agree to buy or sell a particular amount of a currency at a specific exchange rate, on a specific date in the future. This contract is usually used to hedge against fluctuations in the currency markets that could affect the value of their investments, businesses or assets. The other options listed (A, C, D) do not accurately describe the specific contract being asked for.

What Is the Name of the Contract Where Corporations,institutional Investors,and