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ACI

3I0-012 · Question #521

On fixing date, the settlement payment of an NDF reflects the differential between the agreed forward rate and:

The correct answer is A. the fixing spot rate. See the full explanation below for the reasoning.

Question

On fixing date, the settlement payment of an NDF reflects the differential between the agreed forward rate and:

Options

  • Athe fixing spot rate
  • Bthe daily high
  • Cthe days' average rate
  • Dthe average rate over the NDF period

How the community answered

(44 responses)
  • A
    70% (31)
  • B
    9% (4)
  • C
    16% (7)
  • D
    5% (2)

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