Exchange rate today for settlement
Question: An agreement to trade currencies based on the exchange rate today for settlement within two business days is called a(n) _____ trade.A. swap
B. option
C. futures
D. forward
E. spot
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The swaps are governed by standard swap documentation. Identify the risks of default, and explain which party bears a given risk of default.
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An agreement to trade currencies based on the exchange rate today for settlement within two business days is called a(n) _____ trade.
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