Quiz on ” Forex Options – An Introduction “

1. What is an FX option?

a) A direct investment to express a view on the underlying market

b) A financial term that is complex and complicated

c) A tool that cannot be used as a hedging tool

2. What is a call option?

a) A contract that allows the investor to sell the underlying currency pair at the strike price when the option expires

b) An option to sell the currency pair

c) A contract which allows the investor to buy a specific amount of the underlying currency pair at the time that the option is

3. What is the maximum loss on an option?

a) The premium paid

b) Unlimited

c) The price of the currency pair at the time the option expires

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