A foreign exchange option is: ·
a. the right to engage in buying or selling on the spot market.
b. the right to purchase or sell foreign currency at a specified price on a specified date in the future.
c. when the price of foreign currency exceeds the spot rate.
d. when a speculator must decide whether to move into the market.
Ans: b. the right to purchase or sell foreign currency at a specified price on a specified date in the future.
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Indicate whether the statement is true or false
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A. increased; consumers became worse off than they would have been if the price level had not changed.
B. decreased; consumers became worse off than they would have been if the price level had not changed.
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a. True b. False Indicate whether the statement is true or false