What has occurred when one company arranges to buy a foreign currency some time in the future, at an exchange rate quoted today?
A. The company has purchased a foreign currency option.
B. The company has entered a forward contract.
C. The currency has been devalued.
D. None of the above
Answer:B
What has occurred when one company arranges to buy a foreign currency some time in the future, at an exchange rate quoted today?
A. The company has purchased a foreign currency option. B. The company has entered a forward contract. C. The currency has been devalued. D. None of the above