ACI
3I0-013 · Question #226
The discount or premium on forward foreign exchange points is calculated based on:
The correct answer is A. The level of interest rates in the base currency. See the full explanation below for the reasoning.
Question
The discount or premium on forward foreign exchange points is calculated based on:
Options
- AThe level of interest rates in the base currency
- BThe level of interest rates in the counter currency
- CThe differential between the interest rates in the two currencies
- DThe current volatility in the FX markets
How the community answered
(52 responses)- A77% (40)
- B2% (1)
- C8% (4)
- D13% (7)
Community Discussion
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