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3I0-012 · Question #400

3I0-012 Question #400: Real Exam Question with Answer & Explanation

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Question

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:

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

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