Which of the following describes the way the forward price of a foreign currency is quoted?
A) The number of U.S. dollars per unit of the foreign currency
B) The number of the foreign currency per U.S. dollar
C) Some forward prices are always quoted as the number of U.S. dollars per unit of the foreign currency and some are always quoted the other way round
D) There are no quotation conventions for forward prices

Question

Quizplus · Accepted Answer

Forward prices can be quoted in either way, depending on the currency pair and market conventions. Some currencies are typically quoted as the number of U.S. dollars per unit of the foreign currency, while others are quoted as the number of the foreign currency per U.S. dollar.

Which of the Following Describes the Way the Forward Price