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This question belongs to Management International Finance And Treasury

International Finance and Treasury

?

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 & Solution

Correct Answer: Option B

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Question posted by Examveda

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