GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which financial instrument provides a buyer the right to purchase or sell a fixed amount of currency at a prearranged price, within a few days to a couple of years
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cable transfer
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letter of credit
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bill of exchange
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foreign currency option
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Explanation:
Detailed explanation-1: -Which term refers to the price paid by the buyer to the seller in a currency option contract? Premium. Correct! This is the definition of premium for an option contract.
Detailed explanation-2: -There are typically three types of financial instruments: cash instruments, derivative instruments, and foreign exchange instruments.
There is 1 question to complete.