Q45
The forward exchange rate __________
A.
is the rate today for exchanging one currency for another for immediate delivery
B.
is the rate today for exchanging one currency for another at a specific future date
AnswerC.
is the rate today for exchanging one currency for another at a specific location on a specific future date
D.
is the rate today for exchanging one currency for another at a specific location for immediate delivery
Answer: Option B
Solution
Answer: Option B
Solution:
The forward exchange rate is the rate today for exchanging one currency for another at a specific future date. Forward exchange rate is the exchange rate at which a party is willing to enter into a contract to receive or deliver a currency at some future date.