The difference between the spot contract and forward contract is that:
A) the spot contract has a fixed price on the currency, and the forward contract has a flexible price
B) the spot contract is a contract to be settled immediately, and the forward contract is a contract to be settled at a future agreed upon date.
C) the spot contract is a derivative, and the forward contract is not a derivative.
D) the spot contract has fixed price but the contract can be settled at a later date, the forward contract is a contract to be settled immediately.
Ans: B) the spot contract is a contract to be settled immediately, and the forward contract is a contract to be settled at a future agreed upon date.
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