Question
Which of the following statements is correct about forward contract and option? Question 3 options: A) Forward rate is the actual exchange rate on a
Which of the following statements is correct about forward contract and option?
Question 3 options:
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| A) | Forward rate is the actual exchange rate on a future date. |
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| B) | Under an option contract, a company has both the right and obligation to trade foreign currency in the future at a certain rate.
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| C) | A company needs to pay a price (premium) to purchase option contract. |
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| D) | A forward rate will become the spot rate in future.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
9781285586618
