Question $5($Mandatory$)(1$ point$)$

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A company knows it will be paid a certain amount of a foreign currency from one of its suppliers in the future. Which of the following is true?

Question $5$ options:

a$)$

An option will always give a better outcome than a forward contract

b$)$

An option can be used to lock in the exchange rate

c$)$

A forward contract will always give a better outcome than an option

d$)$

A forward contract can be used to lock in the exchange rate