The given statements are related to financial derivatives. Choose the correct answer for the statements being correct or incorrect.
Statement I A speculator will gain, if he sells foreign currency under a forward contract, when the spot price is higher than the forward price.
Statement II In currency futures, intra currency spread exists when a speculator buys/sells the same currency for two delivery dates.
A. Statement I is correct, but Statement II is incorrect
B. Statement II is correct, but Statement I is incorrect
C. Both statement are correct
D. Both statements are incorrect
Answer: Option B
This Question Belongs to Management >> International Finance And Treasury
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