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3I0-012 · Question #547

What is an FX swap?

The correct answer is B. A spot sale (purchase) and a forward purchase (sale) of two currencies agreed simultaneously between. See the full explanation below for the reasoning.

Question

What is an FX swap?

Options

  • AAn exchange ot two streams of interest payments in different currencies and an exchange of the principal
  • BA spot sale (purchase) and a forward purchase (sale) of two currencies agreed simultaneously between
  • CAn exchange of currencies on a date beyond spot and at a price fixed today
  • DNone of the above

How the community answered

(39 responses)
  • A
    13% (5)
  • B
    79% (31)
  • C
    5% (2)
  • D
    3% (1)

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