The difference between the spot contract and a forward contract is that:
a. the former is a flexible price on the currency, and the latter is a fixed price.
b. the former is a contract to be settled immediately, and the latter is a contract to be settled at a future agreed-upon date.
c. the former is a derivative, and the latter is not a derivative.
d. the former has a fixed price but the contract can be settled at a later date, and the latter is a contract to be settled immediately.
Ans: b. the former is a contract to be settled immediately, and the latter is a contract to be settled at a future agreed-upon date.
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