Bank dealers in conversations among themselves use a shorthand notation to quote bid and ask forward prices in terms of forward points.Complete the following table: $$\begin{array} { l c c }
\text { Spot } & & 1.9072 - 1.9077 \
& \text { Forward Point Quotations } & \
\hline \text { One-month } & 32 - 30 & \
\text { Three-month } & 57 - 54 & 1.9015 - 1.9023 \
\text { Six-month } & 145 - 138 & 1.8927 - 1.8939 \
\hline
\end{array}$$

Question

Bank dealers in conversations among themselves use a shorthand notation to quote bid and ask forward prices in terms of forward points.Complete the following table: $$\begin{array} { l c c } 
\text { Spot } & & 1.9072 - 1.9077 \
& \text { Forward Point Quotations } & \
\hline \text { One-month } & 32 - 30 & \
\text { Three-month } & 57 - 54 & 1.9015 - 1.9023 \
\text { Six-month } & 145 - 138 & 1.8927 - 1.8939 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The correct answer is A because the forward price is calculated by adding the forward points to the spot price. For example, the one-month forward price is 1.9072 + 0.0032 = 1.9104.

Bank Dealers in Conversations Among Themselves Use a Shorthand Notation