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ACI

3I0-012 · Question #415

Forward points represent:

The correct answer is C. Largely, the interest rate differential between two currencies. See the full explanation below for the reasoning.

Question

Forward points represent:

Options

  • AThe expected appreciation or depreciation of the base currency
  • BThe expected appreciation or depreciation of the quoted currency
  • CLargely, the interest rate differential between two currencies
  • DSolely, the interest rate differential between two currencies

How the community answered

(23 responses)
  • A
    4% (1)
  • B
    13% (3)
  • C
    78% (18)
  • D
    4% (1)

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