On behalf of Cool Camel Water Company, Yanna deposited a check denominated in South Korean won into a bank in Brazil.

This transaction was conducted in:

A. Eurocurrency

B. Eurodollars

Forward and futures currency contracts impose an obligation to either buy or sell currency at a future date. In contrast, option contracts give the option-holder the rightbut not the obligationto buy or sell a specific (underlying) asset at a specific price (called the exercise or strike price) on or before an expiration date.

2. ___________ allows you to exercise the option only on the expiration date. (American or European)