The forward exchange rate

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The forward exchange rate __________

A. is the rate today for exchanging one currency for another for immediate delivery

B. is the rate today for exchanging one currency for another at a specific future date

C. is the rate today for exchanging one currency for another at a specific location on a specific future date

D. is the rate today for exchanging one currency for another at a specific location for immediate delivery

Answer: Option B

Solution(By Examveda Team)

The forward exchange rate is the rate today for exchanging one currency for another at a specific future date. Forward exchange rate is the exchange rate at which a party is willing to enter into a contract to receive or deliver a currency at some future date.

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