A _______________ is a contract giving the purchaser the right,but not the obligation,to buy or to sell a standard amount of a traded currency on a stated date or at any time before a stated date and at a stated price.

Question

Quizplus · Accepted Answer

A futures transaction (B) is a contract to buy or sell a specified asset at a predetermined price at a set time in the future. A spot transaction (C) is an immediate exchange of currency at the current exchange rate. A forward transaction (D) is a contract to exchange currency at a specified date in the future, but at a rate agreed upon today. The description in the question matches that of a foreign exchange option, which gives the purchaser the right, but not the obligation, to buy or sell a standard amount of currency on or before a specified date at a stated price.

A _______________ Is a Contract Giving the Purchaser the Right,but