ACI
3I0-012 · Question #691
3-month USD/CHF is quoted at 112/110. Interest rates in Switzerland are reduced but USD rates (which are higher) are unchanged. What would you expect the 3-month forward USD/CHF rate to be?
The correct answer is B. 118/116. See the full explanation below for the reasoning.
Question
3-month USD/CHF is quoted at 112/110. Interest rates in Switzerland are reduced but USD rates (which are higher) are unchanged. What would you expect the 3-month forward USD/CHF rate to be?
Options
- Aunchanged
- B118/116
- C109/107
- D106/104
How the community answered
(31 responses)- A6% (2)
- B81% (25)
- C3% (1)
- D10% (3)
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