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3I0-012 · Question #439

3I0-012 Question #439: Real Exam Question with Answer & Explanation

The correct answer is C. An exchange of currencies on a date beyond spot and at a price fixed today. See the full explanation below for the reasoning.

Question

What is an outright forward FX transaction?

Options

  • AA spot sale (purchase) and a forward purchase (sale)
  • BA spot sale (purchase) and a forward sale (purchase)
  • CAn exchange of currencies on a date beyond spot and at a price fixed today
  • DAn exchange of currencies on a date beyond spot

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