AFP
CTP · Question #516
(Topic 6) Which of the following statements is true about a forward foreign exchange contract?
The correct answer is C. It specifies delivery of currencies at an exchange rate established today for a currency. See the full explanation below for the reasoning.
Question
- (Topic 6)
Which of the following statements is true about a forward foreign exchange contract?
Options
- AIt is a right to buy or sell foreign currency at a specified price within a fixed time period.
- BIt does not require an underlying commercial transaction because the contract trades on
- CIt specifies delivery of currencies at an exchange rate established today for a currency
- DIt is an exchange of currencies at the outset of a transaction at a fixed rate determined
How the community answered
(43 responses)- A14% (6)
- B2% (1)
- C77% (33)
- D7% (3)
Community Discussion
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