A forward exchange contract a. gives the owner the right, but not the obligation

Question

A forward exchange contract
a. gives the owner the right, but not the obligation, to buy aforeign currency at a fixed exchange rate for a fixed period oftime. b. gives the owner the right to purchase a foreign currency atsome point in the future and any gains or losses arecredited/debited to the account at the close of business eachday. c. requires delivery, at a specified future date, of onecurrency for a specified amount of another currency. d. requires delivery within two working days, of onecurrency for a specified amount of another currency. A forward exchange contract
a. gives the owner the right, but not the obligation, to buy aforeign currency at a fixed exchange rate for a fixed period oftime. b. gives the owner the right to purchase a foreign currency atsome point in the future and any gains or losses arecredited/debited to the account at the close of business eachday. c. requires delivery, at a specified future date, of onecurrency for a specified amount of another currency. d. requires delivery within two working days, of onecurrency for a specified amount of another currency.

Explanation / Answer

c. requires delivery, at a specified future date, of one currency for a specified amount of another currency.

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