In which of the following categories would an agreement to buy or sell a certain quantity of a specified currency at a fixed price at a date 30, 60, 90, 120, or 360 days in the future be included?
A) an option
B) a futures contract
C) a forward contract
D) a swap

Question

Quizplus · Accepted Answer

The description matches that of a forward contract, where two parties agree to buy or sell a set amount of currency at a fixed price on a specific future date. Options give the buyer the right but not the obligation to buy or sell a set amount of currency at a fixed price, while futures and swaps involve standardized contracts traded on exchanges or between financial institutions.

In Which of the Following Categories Would an Agreement to Buy