Bank dealers in conversations among themselves use a shorthand notation to quote bid and ask forward prices in terms of forward points.This is convenient because
A) forward points may change faster than spot and forward quotes.
B) forward points may remain constant for long periods of time,even if the spot rates change frequently.
C) in swap transactions where the trader is attempting to minimize currency exposure,the actual spot and outright forward rates are often of no consequence.
D) forward points may remain constant for long periods of time,even if the spot rates change frequently,and in swap transactions where the trader is attempting to minimize currency exposure,the actual spot and outright forward rates are often of no consequence.
Correct Answer:
Verified
Q90: Nondollar currency transactions
A)are priced by looking at
Q91: Consider the balance sheets of Bank A
Q92: Consider the following spot and forward rate
Q93: