ACI
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)- A3% (1)
- B6% (2)
- C80% (28)
- D11% (4)
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