Which of the following statements is true regarding forward contracts, futures contracts, options and swaps?

Select one:

a.A forward contract can be purchased on the open market and is recorded at its historical cost, then adjusted for changes in the market.

b.A futures contract is negotiated between two parties who are betting in the opposite direction on the movement of the underlying price.

c.An option is a contract requiring the holder to either "put" or "call" an underlying asset at a specified point in time.

d.A swap is a contract between two parties to exchange an ongoing stream of cash flows.

If the sale of the merchandise was denominated in Swiss francs, the November 30 entry to record the receipt of payment from Watchem included a:

Select one:

a.credit to Accounts Receivable for $104,040.

b.credit to Exchange Gain for $3,060.

c.debit to Cash for $107,100.

d.debit to Exchange Loss for $3,060.

If the sale of merchandise is denominated in dollars, the November 30 entry to record receipt of the payment from Watchem included a:

Select one:

a.credit to Accounts Receivable for $104,040.

b.credit to Exchange Gain for $3,060.

c.debit to Cash for $107,100.

d.debit to Exchange Loss for $3,060.