A 12-month EUR/USD swap is quoted at 241/244. EUR interest rates are expected to fall, with USD interest rates (which are higher) remaining stable. Assuming no change in the spot rate what effect would you expect on the forward points?
A) Unchanged
B) Move towards 228/231
C) Move towards 257/260
D) Insufficient information
Correct Answer:
Verified
Q82: Where the Committee for Professionalism of the
Q83: In case of a default on a
Q84: Voice-brokers in spot FX act as:
A) Proprietary
Q85: What are the secondary market proceeds of
Q86: A disgruntled customer claims that he should
Q88: The use of standard settlement instructions (SSI's)
Q89: If a dealer has interest on one
Q90: A futures clearing house is:
A) The buyer
Q91: You bought USD 5,000,000 against EUR at
Q92: A 3-month (91-day) deposit of EUR25 million
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents