Vidyalelo
Management · Q686

International Finance and Treasury

Graduate and Post Graduate · Management · question 686

Q686

If a company agreements today for several future date of real currency exchange, they will be building use of a

A.
stock rate
B.
forward rate
Answer
C.
futures rate
D.
None of the above

Answer: Option B

Solution

Answer: Option B
Solution:
If a company agreements today for several future date of real currency exchange, they will be building use of a forward rate. A forward rate is an interest rate applicable to a financial transaction that will take place in the future.