Which of the Following Is Correct When Contracting Ahead in the Forward

Which of the following is correct when contracting ahead in the forward exchange market?

A) At contract close you pay either the forward rate that was contracted or the then-current rate.
B) Contracting ahead is always cheaper than waiting to pay spot rates.
C) Your cost is locked in from the beginning of the contract, regardless of market changes.
D) Paying spot price is safer than contracting forward.

Correct Answer:

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