Question: Which statement best describes a forward exchange contract? An agreement between the bank and customer to exchange currencies on a specified future date at a

Which statement best describes a forward exchange contract?


 An agreement between the bank and customer to exchange currencies on a specified future date at a specified rate that is agreed upon today. 


A contract between two parties that is settled with foreign currency at the current market rate. 


An agreement between the bank and customer to exchange currencies on a specified future date at the spot rate in effect at that time. 


An agreement to settle a foreign currency denominated receivable or payable on a specified date at the current market rate.

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