ACI
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)- A70% (16)
- B4% (1)
- C9% (2)
- D17% (4)
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