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      Question

      The transaction in which the exchange of currencies

      takes place at a specified future date, subsequentto the spot date is known as a ______
      A swap transaction Correct Answer Incorrect Answer
      B forward transaction Correct Answer Incorrect Answer
      C future transaction Correct Answer Incorrect Answer
      D non-deliverable forwards Correct Answer Incorrect Answer
      E option transaction Correct Answer Incorrect Answer

      Solution

      A currency forward is a  binding contract in the foreign exchange market  that locks in the exchange rate for the purchase or sale of a currency on a future date.

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