All FX forwards are valued using the change in the spot rate.

Name: All FX forwards are valued using the change in the spot rate.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

FX forwards are primarily valued using the difference between the forward rate agreed upon at the contract initiation and the current forward rate at the time of valuation, not just the change in the spot rate. Interest rate differentials between the two currencies involved also play a crucial role in determining the forward rate.

All FX Forwards Are Valued Using the Change in the Spot