Question

Foreign currency market participants in the futures market wishing to lock in a price at which...

  1. Foreign currency market participants in the futures market wishing to lock in a price at which they could _______ a foreign currency will ________ a futures contract.

    a) buy; sell

    b) sell; sell

    c) sell; buy

    d) All of the above  
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Answer #1

Answer is D ie All of the above

A futures contract is a legal agreement to buy or sell a particular commodity asset, or security at a predetermined price at a specified time in the future. Futures contracts are standardized for quality and quantity to facilitate trading on a futures exchange. The buyer of a futures contract is taking on the obligation to buy and receive the underlying asset when the futures contract expires. The seller of the futures contract is taking on the obligation to provide and deliver the underlying asset at the expiration date.

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