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Basic Question 5 of 14
Assume AUD:USD is 1.0717 and the one-month forward rate is quoted as -0.72%. The AUD:USD one-month forward rate is ______.
B. 1.06398
C. 1.0794
A. 1.0645
B. 1.06398
C. 1.0794
User Contributed Comments 4
| User | Comment |
|---|---|
| Omosewa | Can someone please explain why this solution is different from that in question 2? |
| Maxfit | This is based on a percentage change, whereas the one in question 2 is based on a 'point change'. |
| vatsal92 | And in question 2 it's a negative value. |
| Kennyk11 | Thank you Omosewa for asking that, thought the same thing :p |
Your review questions and global ranking system were so helpful.
Lina
Learning Outcome Statements
explain the arbitrage relationship between spot and forward exchange rates and interest rates, calculate a forward rate using points or in percentage terms, and interpret a forward discount or premium
CFA® 2025 Level I Curriculum, Volume 1, Module 8.