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Management · Q810

International Finance and Treasury

Graduate and Post Graduate · Management · question 810

Q810

A forward currency transaction

A.
is always at a premium over the spot rate
B.
means that delivery and payment must be made within one business day (USA/Canada) or two business days after the transaction date
C.
calls for exchange in the future of currencies at an agreed rate of exchange
Answer
D.
sets the future date when delivery of a currency must be made at an unknown spot exchange rate

Answer: Option C

Solution

Answer: Option C
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