ACI
3I0-012 · Question #97
Spot EUR/USD is 1.3050-53 and EUR interest rates are lower than USD interest rates. Would you expect the forward points for EUR/USD to be:
The correct answer is A. added to spot. See the full explanation below for the reasoning.
Question
Spot EUR/USD is 1.3050-53 and EUR interest rates are lower than USD interest rates. Would you expect the forward points for EUR/USD to be:
Options
- Aadded to spot
- Bsubtracted from spot
- Ca negative value
- DInsufficient information to decide
How the community answered
(50 responses)- A80% (40)
- B2% (1)
- C12% (6)
- D6% (3)
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