________ give a firm a right, but not an obligation, to exchange currency at a given rate.

Question

Quizplus · Accepted Answer

Currency options give the holder the right, but not the obligation, to exchange currency at a given rate. Currency forwards involve an obligation to exchange currency at a later date, while currency futures involve a standardized contract to exchange currency at a specific date and rate. Currency exchanges refer to the physical locations or platforms where currencies can be traded.

________ Give a Firm a Right, but Not an Obligation