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5 August, 16:41

The forward market a. involves contracting today for the future purchase of sale of foreign exchange at the spot rate that will prevail at the maturity of the contract. b. involves contracting today for the future purchase or sale of foreign exchange at a price agreed upon today. c. involves contracting today for the right but not obligation to the future purchase of sale of foreign exchange at a price agreed upon today. d. none of the options

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  1. 5 August, 20:28
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    Answer: Option (b) is correct.

    Explanation:

    Correct Option: Involves contracting today for the future purchase or sale of foreign exchange at a price agreed upon today.

    A forward contract is a marketplace at which contracts are made today at an agreed price today but the delivery will be in the future. This is ideally used for the foreign exchange market.

    These contracts are basically between the banks or between the bank and the customer.

    Securities and commodity markets are also involved in these type of contracts.
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