Question

Which of the following is False?

	A.	Forward contracts contain a commitment to the owner, and can be tailored to the desire of the owner
	B.	Currency futures contracts sold on an exchange contain a right but not a commitment to the owner, and are standardized
	C.	Currency options sold through an options exchange contains a right but not a commitment to the owner, and are standardized.
	D.	All of the given answers are false.
	E.	None of the given answers are false.

Answer 1

Forward contracts can be tailored to the desire of the owner since they are over the counter contract.

Therefore Option A is True

Future contracts sold on exchange does not contain right. But it contains commitment or obligation to both owner and seller.

Therefore option B is False

Currency options sold through an options exchange contains a right but not a commitment to the owner, and are standardized.

Therefore option C is True

Therefore answer is option B.

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