A spot exchange rate for two currencies:

A) is based on immediate (two day) delivery of currency.
B) is always constant over time.
C) cannot exceed the forward exchange rate for the currencies.
D) a and b
E) All of the above

A spot exchange rate is the current exchange rate between two currencies for immediate delivery, usually within two days. It is not constant over time and can fluctuate based on market forces, such as supply and demand. The forward exchange rate is the rate at which two currencies can be exchanged at a future date, and may differ from the spot rate.