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Basic Question 14 of 20

Which statement is true regarding the forward points?

A. Forward points need to be annualized.
B. Forward points are commonly quoted in fractions of 1/100.
C. The longer the term of the forward contract, the larger the absolute number of forward points.

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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

Learning Outcome Statements

explain spot and forward rates and calculate the forward premium/discount for a given currency;

calculate the mark-to-market value of a forward contract;

CFA® 2025 Level II Curriculum, Volume 1, Module 8.