The essential feature of a _______ is that it immediately fixed the rate at which a specified amount of one currency is to be delivered in exchange for a specific amount of another at a future date ?
Correct answer: A. forward contract
- A. forward contract
- B. spot contract
- C. money contract
- D. bid contract
Explanation
A forward contract fixes today the exchange rate for delivery of specified currencies at a future date. A spot contract, by contrast, settles almost immediately.
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