D. Forward and Spot Transactions
A spot transaction is a two-day delivery(Trade+2) transaction except in the case of trades between the US Dollar, Canadian Dollar, Turkish Lira and Russian Ruble, which settle the next business day(Trade+1). One way to deal with the foreign exchange risk is to engage in a forward transaction. A forward is a deal to exchange currencies - to buy or sell a particular currency - at an agreed date in the future, at a agreed rate. Banks will provide forward FX quotes on more or less any currency pair. The duration of the trade can be a one day, a few days, months or years. Usually the date is decided by both parties.