Ask Question
15 April, 14:51

Which statement is true regarding a foreign currency option? Multiple Choice A foreign currency option gives the holder the obligation to buy or sell foreign currency in the future. A foreign currency option gives the holder the obligation to only sell foreign currency in the future. A foreign currency option gives the holder the obligation to only buy foreign currency in the future. A foreign currency option gives the holder the right but not the obligation to buy or sell foreign currency in the future. A foreign currency option gives the holder the obligation to buy or sell foreign currency in the future at the spot rate on the future date.

+1
Answers (1)
  1. 15 April, 15:11
    0
    Answer: A foreign currency option gives the holder the right but not the obligation to buy or sell foreign currency in the future

    Explanation:

    A currency option which is also referred to as the forex option is a contract which gives the buyer the right, but not obligated to purchase or sell a particular currency at an exchange rate on or before a particular date.

    Currency options is a common way for individuals, corporations, or financial institutions to curtail adverse movements in the exchange rates.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Which statement is true regarding a foreign currency option? Multiple Choice A foreign currency option gives the holder the obligation to ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers