ACI
3I0-012 · Question #98
The forward points are calculated using:
The correct answer is C. The interest rates in the two currencies. See the full explanation below for the reasoning.
Question
The forward points are calculated using:
Options
- AThe level of interest rates in the base currency
- BThe level of interest rates in the quoted currency
- CThe interest rates in the two currencies
- DYour expectations of the future spot rate
How the community answered
(26 responses)- A8% (2)
- B12% (3)
- C77% (20)
- D4% (1)
Community Discussion
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