Question: False or True? 1) The major difference between currency futures and forward contracts is that futures contracts are standardized for ease of trading on an

False or True?

1) The major difference between currency futures and forward contracts is that futures contracts are standardized for ease of trading on an exchange market whereas forward contracts are specialized and tailored to meet the needs of clients.

2) The writer of the option is referred to as the seller, and the buyer of the option is referred to as the holder.

3) Standard foreign currency options are priced around the forward rate.

4) As long as the option has time remaining before expiration, the option will possess the time value element.

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