Sign Up

Have an account? Sign In Now

Sign In

Forgot Password?

Don't have account, Sign Up Here

Forgot Password

Lost your password? Please enter your email address. You will receive a link and will create a new password via email.

Have an account? Sign In Now

Please type your username.

Please type your E-Mail.

Please choose the appropriate section so the question can be searched easily.

Please choose suitable Keywords Ex: question, poll.

Please choose an appropriate title for the question so it can be answered easily.

Sign InSign Up

IGNOU Answers

IGNOU Answers Logo IGNOU Answers Logo
Search
Ask A Question

Mobile menu

Close
Ask a Question
  • Home
  • Categories
    • All Questions
    • Commerce
    • Computer Science
    • Economics
    • English
    • General Queries
    • Political Science
    • Public Administration
    • Psychology
    • Sociology
    • Others
  • Tags
  • Users
  • Contact Us
Home/ Questions/Q 79
Next
In Process
Adv
AJay_Mishra
  • 1
AJay_Mishra
Asked: June 27, 20192019-06-27T14:43:25+05:30 2019-06-27T14:43:25+05:30In: Commerce

Distinguish between Forward contarcts and Currency options

  • 1
Distinguish between Forward contarcts and Currency options
Export Procedures and Documentation
  • 1 1 Answer
  • 0 Followers
  • 0
  • Share
    Share
    • Share on Facebook
    • Share on Twitter
    • Share on LinkedIn
    • Share on WhatsApp

1 Answer

  • Voted
  • Oldest
  • Recent
  1. admin
    2019-06-27T14:44:49+05:30Added an answer on June 27, 2019 at 2:44 pm

    Forward contracts are binding agreements to buy or sell an asset at a specific price on a specific date. For example, two parties may agree to trade 1,000 ounces of gold at $1,200 per ounce on Sept. 1. One party to such an agreement will have an obligation to buy, and the other will have an obligation to sell. Such contracts can involve practically anything of value, including stocks, bonds, foreign currencies, agricultural commodities such as corn or soybeans, and valuable metals, including gold and silver. The asset that changes hands is referred to as the underlying asset, or simply “the underlying.” Forwards are traded over the counter.

    A currency option gives the holder the right-but not the obligation — to buy or sell an asset at a specific price on a specific date. A curreny option represents the right to buy, while a put option represents the right to sell. A currency option on 1,000 shares with a strike price of $100 and an expiration date of Aug. 27 allows the option holder to buy 1,000 shares at $100 each on Aug. 27. If the market price of the stock is $110 per share, it makes sense to exercise this privilege, because you can then sell the same shares at $110 for an immediate profit. If the stock can otherwise be purchased for $90, however, the holder would not exercise the call — hence the name currency “option.”

    • 1
    • Reply
    • Share
      Share
      • Share on Facebook
      • Share on Twitter
      • Share on LinkedIn
      • Share on WhatsApp
Leave an answer

Leave an answer
Cancel reply

Browse

Sidebar

Ask A Question

Stats

  • Questions 322
  • Answers 323

Related Questions

  • FST is not appearign in the drop list while filling ...

  • What do you mean by globalization? Describe major forces of ...

  • What are the basic principles of operation of ECGC? Describe ...

  • BBARL Course

  • question paper 2018 for open mat ignou MBA

  • Popular
  • Answers
  • Anonymous

    I need MCS-014 Assignment solution. ...

    • 14 Answers
  • himanshu

    i want answers of assignment ...

    • 11 Answers
  • Anonymous

    Can anyone provide answers of ...

    • 8 Answers
  • Anonymous

    What does the IGNOU BCA ...

    • 7 Answers
  • Vandana

    Calculate the physical address ...

    • 6 Answers
  • admin
    admin added an answer Since the question is posted in Psychology category, I assume you are trying to ask "Discuss the nature, types and steps of case study." If so, then this question is… June 29, 2022 at 11:03 am
  • admin
    admin added an answer Unlike other methods of qualitative research, the grounded theorists do not believe in collecting data through taping and transcribing interviews as it is believed to be a waste of time… June 29, 2022 at 10:58 am
  • abhijit das
    abhijit das added an answer can u give me ur contact number  .. June 22, 2022 at 10:46 am
  • admin
    admin added an answer A social institution is a set of rules & regulations which are part of an organization which fulfils an important function of society. Such as, a family is an important… June 16, 2022 at 9:28 am
  • Prakash bist
    Prakash bist added an answer Sir Im a foreign student residing in India what is the fee for per course to apply for photo copy of answer sheet? June 4, 2022 at 8:12 pm

Top Members

admin

admin

  • 2 Questions
  • 1k Points
Pooja Sharma

Pooja Sharma

  • 7 Questions
  • 39 Points
Roushani Kumari

Roushani Kumari

  • 1 Question
  • 34 Points

Trending Tags

Free Assignments Free Solved Assignments IGNOU BCA Solved Assignments IGNOU BCOM Solved Assignments

Explore

  • Home
  • Categories
    • All Questions
    • Commerce
    • Computer Science
    • Economics
    • English
    • General Queries
    • Political Science
    • Public Administration
    • Psychology
    • Sociology
    • Others
  • Tags
  • Users
  • Contact Us

Footer

IGNOU Answers

About

IGNOU Answers is a social Questions & Answers platform which will help you to find answers to your questions..

Question Tags

BA Sociology ESO-11 Export Procedures and Documentation fst-01 International Business Finance ma psychology mpc-004 mpc-005 question The Study of Society

Categories

  • Commerce
  • Computer Science
  • Economics
  • English
  • General Queries
  • Others
  • Political Science
  • Psychology
  • Public Administration
  • Science
  • Sociology

Useful Links

  • Home
  • Contact Us
  • Privacy Policy
  • Buy Assignments
  • IGNOU Updates

© 2021 IgnouAnswers.com. All Rights Reserved
Created With Love by KHOJINET.

Insert/edit link

Enter the destination URL

Or link to existing content

    No search term specified. Showing recent items. Search or use up and down arrow keys to select an item.