Mr. Black and Mr. White have agreed to exchange C$12,500 for $10,000 with the exchange occurring four months from now. This agreed-upon exchange rate is called the:

Question

Quizplus · Accepted Answer

The agreed-upon exchange rate for a future date is called the forward rate. The spot rate is the current exchange rate, the swap rate involves exchanging currencies for a certain period of time, the parity rate refers to the equalization of two country's currency values, and the triangle rate is not a commonly used term in foreign exchange markets.

Mr Black and Mr