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ACI

3I0-012 · Question #161

If 6-month USD/CAD forward rates are quoted at 40/45, which of the following statements is correct?

The correct answer is B. CAD rates are higher than USD rates in the 6-month. See the full explanation below for the reasoning.

Question

If 6-month USD/CAD forward rates are quoted at 40/45, which of the following statements is correct?

Options

  • AUSD rates are higher than CAD rates in the 6-month
  • BCAD rates are higher than USD rates in the 6-month
  • CThere is a positive USD yield curve
  • DThere is not enough information to decide

How the community answered

(55 responses)
  • A
    7% (4)
  • B
    76% (42)
  • C
    13% (7)
  • D
    4% (2)

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