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A Foreign Currency Option Contract Traded on US Exchanges Allows

Question 1

Multiple Choice

A foreign currency option contract traded on US exchanges allows for the sale or purchase of a set amount of


A) US currency at a floating exchange rate.
B) US currency at a fixed exchange rate.
C) foreign currency at a floating exchange rate.
D) foreign currency at a fixed exchange rate.
E) none of the above.

Correct Answer:

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