Question

In forward transactions A. currency is bought and sold for delivery later that same day. B. currencies may only be exchanged at rates set by governments well in advance. C. currencies are exchanged at a set date in the future. D. the exchange takes place at the same exchange rate as i

Answer 1

Answer:

The correct answer is letter "C": currencies are exchanged at a set date in the future.

Explanation:

A Forward Contract is an arrangement to buy and sell an asset on a future date. The price of the commodity shall be determined at the time the contract is signed. A forward contract is similar to a forward contract with some major variations. Future contracts do not trade on an exchange and settle at the end of the contract period, while futures contracts do not.