Foreign exchange contract : It is the contract between the parties which agrees to transfer the amount of foreign exchange at a predetermined rate of exchange on predetermined date. Forward contract: It is the contract between the purchase and the seller where they agreed to buy or sell an asset at a fixed price in the future on a specific date. To choose: The correct option.

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Chapter 11, Problem 11.19.1E

To determine

Foreign exchange contract: It is the contract between the parties which agrees to transfer the amount of foreign exchange at a predetermined rate of exchange on predetermined date.

Forward contract: It is the contract between the purchase and the seller where they agreed to buy or sell an asset at a fixed price in the future on a specific date.

To choose: The correct option.

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