Which of the following statements is true about a forward foreign exchange contract?

It is a right to buy or sell foreign currency at a specified price within a fixed time period.

It does not require an underlying commercial transaction because the contract trades on its own.

It specifies delivery of currencies at an exchange rate established today for a currency transaction that settles more than two days in the future.

It is an exchange of currencies at the outset of a transaction at a fixed rate determined by the spot markets.