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3I0-012 · Question #373

A forward/forward FX swap:

The correct answer is C. is a swap that does not start spot and where both the near and the far leg are traded forward. See the full explanation below for the reasoning.

Question

A forward/forward FX swap:

Options

  • Ais a contract by which the maturity of a regular FX swap can be extended at an historic (noncurrent) rate
  • Bis a swap transaction where the near leg is traded either value today or value tomorrow and the far leg
  • Cis a swap that does not start spot and where both the near and the far leg are traded forward
  • Dis a transaction by which a maturing outright forward FX is prolonged at an historic (non-current) rate

How the community answered

(35 responses)
  • A
    3% (1)
  • B
    6% (2)
  • C
    80% (28)
  • D
    11% (4)

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