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ACI

3I0-013 · Question #144

Which of the following is a description of a long OTC foreign currency option position?

The correct answer is B. An option that uses 1MM maturities. See the full explanation below for the reasoning.

Question

Which of the following is a description of a long OTC foreign currency option position?

Options

  • AThe obligation to buy one currency and to sell another currency at a predetermined price
  • BAn option that uses 1MM maturities
  • CAn option dealt directly between two counterparties
  • DAn interest rate protection instrument dealt on an exchange trading floor

How the community answered

(21 responses)
  • A
    5% (1)
  • B
    71% (15)
  • C
    10% (2)
  • D
    14% (3)

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Full 3I0-013 Practice