Quir Week $3$

$3$

$0\mathrm{.}22$:$14$ memaining

Question $2(10$ points$)$

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A Forward Contract, while the most common financial strategy, has one main drawback. It is:

If you have to cancel the meeting, or don't need all the monies you purchases, you will pay the rate of exchange in effect at that time, even though it may cause you to lose some money.

You must purchase all the monies you require all at once and pay for it all at purchase date.

You cannot make any interest on monies not spent

You cannot purchase more money at the same currency rate

You cannot declare the currency exchange as an expense