Assertion A A futures contract specifies in advance the exchange rate to be used but it is not as fl...........

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Assertion (A) : A futures contract specifies in advance the exchange rate to be used, but it is not as flexible as a forward contract. (2 marks)

Reason (R) : A futures contract is for specific currency amount and a specific maturity date.

Codes :

(R) is a correct explanation of (A).

(R) is not a correct explanation of (A).

(A) and (R) are not related with each other.

(R) is irrelevant for (A)

(R) is a correct explanation of (A).

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