ACI
3I0-012 · Question #608
Lending for 3 months and borrowing for 6 months creates a 3x6 forward-forward deposit. The cost of that deposit is called:
The correct answer is D. All of the above. See the full explanation below for the reasoning.
Question
Lending for 3 months and borrowing for 6 months creates a 3x6 forward-forward deposit. The cost of that deposit is called:
Options
- ABreak-even rate
- BImplied rate
- CForward-forward rate
- DAll of the above
How the community answered
(42 responses)- A7% (3)
- B12% (5)
- C2% (1)
- D79% (33)
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