A currency call is like being ____ in the currency futures.
A) out-of-the-money
B) in-the-money
C) long
D) short
E) at-the-money

Question

Quizplus · Accepted Answer

Being long in a currency futures contract means that the investor is expecting the price of the currency to rise. Similarly, in a currency call, the investor is purchasing the right to buy a certain amount of currency at a predetermined price, which means they are expecting the currency to increase in value. Therefore, the correct choice is C) long.

A Currency Call Is Like Being ____ in the Currency