An agreement that gives one party the right to buy or sell from or to •- another party a specified quantity of currency at a specified price would be included in which of the following transactions?

a. an option
b. a futures contract
c. a forward contract
d. a swap


Answer: a. an option

Economics

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Suppose Al, Betty, and Carl own the only fishing companies in your village. Suppose the market price today is $10 per fish. Suppose Al catches 4,000 fish with an average total cost of $7.50, Betty catches 6,000 fish with an average total cost of $6, and Carl catches 10,000 fish with an average total cost of $5 . If everyone is a profit maximizer, what is Betty's marginal cost?

a. $6 b. $7 c. $8 d. $9 e. $10

Economics

The best hope for continued growth of the U.S. economy probably lies in:

a. a return of manufacturing to the U.S. b. innovation c. patents d. decreasing poverty

Economics

Compared to Sweden, the UK, and Italy, the U.S. has a ______ union membership percentage of its labor force.

Fill in the blank(s) with the appropriate word(s).

Economics

Using the Taylor rule, if inflation is 3 percent, desired inflation is 2 percent, and output is 2 percentage points above potential, the Fed should target a federal funds rate of:

A. 3.5. B. 4.5. C. 6.5. D. 3.0.

Economics