Question

    The transaction in which the exchange of currencies takes place at a specified future date, subsequentto the spot date is known as a ______

    A swap transaction Correct Answer Incorrect Answer
    B forward transaction Correct Answer Incorrect Answer
    C future transaction Correct Answer Incorrect Answer
    D non-deliverable forwards Correct Answer Incorrect Answer
    E option transaction Correct Answer Incorrect Answer

    Solution

    A currency forward is a  binding contract in the foreign exchange market  that locks in the exchange rate for the purchase or sale of a currency on a future date.

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