You are quoted the following market rates: Spot EUR/USD 1.3097-00 0/N EUR/USD swap 0.08/0.11 TIN EUR/USD swap 0.29/0.34 S/N EUR/USD swap 0.10/0.13 Where can you buy EUR against USD for value tomorrow?
A) 1.299971
B) 1.309966
C) 1.309971
D) 1.310029

Question

You are quoted the following market rates: Spot EUR/USD         1.3097-00 0/N EUR/USD swap         0.08/0.11 TIN EUR/USD swap         0.29/0.34 S/N EUR/USD swap         0.10/0.13 Where can you buy EUR against USD for value tomorrow?
A) 1.299971
B) 1.309966
C) 1.309971
D) 1.310029

Quizplus · Accepted Answer

To buy EUR against USD for value tomorrow, we need to look at the Spot EUR/USD rate. The bid price is 1.3097, so we can buy EUR at this rate. The best option is to choose the highest available bid price, which is 1.309971, making the answer C. The other options have lower bid prices and are therefore not the best choice.

You Are Quoted the Following Market Rates: Spot EUR/USD 1