Which of the following statements is true?
A)The historical rate is the exchange rate at the beginning of the reporting period and the closing rate is the exchange rate at the end of the reporting
Period.
B)The historical rate is the exchange rate at the date of the transaction and the closing rate is the exchange rate at the end of the reporting period.
C)The spot rate is the exchange rate at the date of the transaction and the closing rate is the exchange rate at the conclusion of a hedge instrument.
D)The historical rate is the exchange rate at the beginning of the reporting period and the forward rate is the exchange rate at the end of the reporting
Period.

Question

Quizplus · Accepted Answer

The historical rate is the exchange rate at the date of the transaction and the closing rate is the exchange rate at the end of the reporting period. The spot rate is the exchange rate at the date of the transaction, and the forward rate is an exchange rate agreed upon now for a future transaction. The beginning rate is not necessarily the historical rate, and the closing rate is not related to a hedge instrument.

Which of the Following Statements Is True