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3I0-012 · Question #375

If I say that I have "bought and sold" EUR/USD in an FX swap, what have I done?

The correct answer is A. Bought EUR and sold USD spot, and sold EUR and bought USD forward. See the full explanation below for the reasoning.

Question

If I say that I have "bought and sold" EUR/USD in an FX swap, what have I done?

Options

  • ABought EUR and sold USD spot, and sold EUR and bought USD forward
  • BBought USD and sold EUR spot, and sold USD and bought EUR forward
  • CSynthetically taken a USD loan in exchange for making a EUR loan with the same counterparty
  • DSold EUR/USD spot and bought back EUR/USD forward

How the community answered

(23 responses)
  • A
    70% (16)
  • B
    4% (1)
  • C
    9% (2)
  • D
    17% (4)

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