Multiple Choice
Which of the following statements is true?
A) A very actively traded spot contract is the spot rate agreement (SRA) .
B) A very actively traded spot contract is the futures rate agreement (FRA) .
C) A very actively traded forward contract is the forward rate agreement (FRA) , commonly used to lock in the interest rate on shorter term borrowings.
D) A very actively traded spot contract is the option rate agreement (ORA) , commonly used to grant the right to buy or sell an asset at a specified price.
Correct Answer:
Verified
Correct Answer:
Verified
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