What is the difference between a spot transaction and a forward transaction in the foreign-exchange market?
a) A spot transaction is the immediate exchange of currencies at the current market rate, while a forward transaction is an agreement to exchange currencies at a future date and predetermined rate.
b) A forward transaction involves immediate currency exchange, while a spot transaction is an agreement to exchange currencies at a future date.
c) Both spot and forward transactions involve immediate currency exchange but at different rates.
d) Both spot and forward transactions involve future currency exchange but at different rates.