Page 7 - P6 Slide Taxation - Lecture Day 5 - Foreign Exchange
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EXCHANGE ITEM DESCRIPTION
FEC An agreement where a person
(Forward exchange agrees with another person to
contract) exchange an amount of currency for
another currency on a future date
@ a specified exchange rate.
FCOC An agreement where a person
(Foreign currency option acquires or grants the right to buy/
contract) sell a certain amount of a nominated
foreign currency before/on a future
expiry date @ a specified exchange
rate from/to another person.
