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Basic Question 3 of 5
If you expect the future spot rate to be lower than the current forward rate, the forward contract value is expected to:
B. decrease.
C. remain the same.
A. increase.
B. decrease.
C. remain the same.
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I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
describe the assumptions concerning the evolution of spot rates in relation to forward rates implicit in active bond portfolio management;
describe the strategy of rolling down the yield curve;
CFA® 2025 Level II Curriculum, Volume 4, Module 26.