Page 68 - P6 Slide Taxation - Lecture Day 4
P. 68

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.
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