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)- A4% (1)
- B13% (3)
- C78% (18)
- D4% (1)
Community Discussion
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