Are the forward points materially affected by changes in the spot rate?
A) never
B) Only for very large movements and longer terms
C) always
D) spot is the principal influence

Question

Quizplus · Accepted Answer

Forward points are affected by changes in the spot rate, but the impact may be minimal for small movements and shorter terms. However, for large movements and longer terms, the impact on forward points can be substantial. Therefore, option B is the best choice.

Are the Forward Points Materially Affected by Changes in the Spot