The ____ does not represent an obligation.
A) long-term forward contract
B) currency swap
C) parallel loan
D) currency option

Question

Quizplus · Accepted Answer

A currency option gives the holder the right, but not the obligation, to buy or sell a specified currency at a predetermined exchange rate within a specific period of time. Long-term forward contracts, currency swaps, and parallel loans all represent obligations for the parties involved.

The ____ Does Not Represent an Obligation