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Commerce · Q20

Business Finance

Graduate and Post Graduate · Commerce · question 20

Q20

Assertion (A): A furores contract specifies in advance the exchange rate to be used, but it is not as flexible as a forward contract. Reason (R): A futures contract is for a specific currency amount and a specific marurity date.

A.
(R) is a correct explanation of (A)
Answer
B.
(R) is not a correct explanation of (A)
C.
(A) and (R) are not related to each other
D.
(R) is irrelevant for (A)

Answer: Option A

Solution

Answer: Option A
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