What is an outright forward FX transaction?
A) A spot sale (purchase) and a forward purchase (sal
B) A spot sale (purchase) and a forward sale (purchas
C) An exchange of currencies on a date beyond spot an
D) An exchange of currencies on a date beyond spot

Question

Quizplus · Accepted Answer

An outright forward FX transaction is an exchange of currencies on a specific date in the future, beyond the spot date. This means that the exchange rate is agreed upon at the present time, but the actual exchange of currencies will take place on the agreed-upon future date. Option A and B involve a combination of spot and forward transactions, but not an outright forward transaction. Option D is incorrect, as it does not specify any type of transaction.

What Is an Outright Forward FX Transaction