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Basic Question 15 of 20
The bid/offer for the spot and forward points for the USD/EUR rates are:
One-month forward: 35/42
B. 1.2780.
C. 1.2800.
Spot: 1.2745/1.2758
One-month forward: 35/42
If you are selling the EUR one-month forward against USD, which rate should be used?
A. 1.2715.
B. 1.2780.
C. 1.2800.
User Contributed Comments 4
| User | Comment |
|---|---|
| merbpr | What is the logic behind this? |
| Oksanata | if youare selling that you have to meet buyer's price |
| sargis | It should be looked from the dealers side |
| davidt876 | ask = buy base bid = sell base |
I used your notes and passed ... highly recommended!
Lauren
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.