An FX forward outright has been dealt for a value date which is subsequently declared to be a bank holiday. According to the Model Code, the exchange rate for the deal:

Question

Options

• Ashould be adjusted to take account of the change in value date
• Bcannot be adjusted if one of the counterparties wishes to adjust the rate but the other wishes to keep
• Cmust be adjusted if one of the counterparties wishes to adjust the rate but the other wishes to keep the
• Dshould be adjusted if the adjustment is for two days or longer but not if it is for only one day

• A
  79% (22)
• B
  4% (1)
• C
  7% (2)
• D
  11% (3)

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