What has occurred when one company purchases the right to buy a foreign currency some time in the future at an exchange rate quoted today?
A. The company has acquired a call option.
B. The company has entered a forward contract.
C. The currency has appreciated relative to the dollar.
D. The company has acquired a put option.
Answer:A
What has occurred when one company purchases the right to buy a foreign currency some time in the future at an exchange rate quoted today?
A. The company has acquired a call option. B. The company has entered a forward contract. C. The currency has appreciated relative to the dollar. D. The company has acquired a put option.