Question

Standardized agreements to buy or sell a specified amount of currency at a date in the future at a pre-determined price are called_____.

Answer 1

Currency futures contracts are standard contracts to buy or sell a certain amount of currency at a future date for a predetermined price.

What is a futures contract on a currency?

"Currency futures" are futures contracts for currencies that describe the price of exchanging one currency for another at a later date. For the purpose of determining the rate for currency futures contracts, the spot rates of the currency pair are employed. Currency futures can be used to hedge against the risk of receiving payments in a different currency.

What benefits may you get from buying a currency futures contract?

A currency futures contract is an agreement to buy or sell a specific amount of money at a specific price at a later date. This contract provides protection from the risk of changing foreign exchange rates by defining the cost of acquiring a currency.

Learn more about Currency futures contracts: https://brainly.com/question/16002388

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