The type of rate that quotes the rate used in a forward contract when settlement is more than two business days after the transaction is called:

Question

Quizplus · Accepted Answer

There are generally four types of rates available: value today,which quotes the rate when settlement will occur on the same day as the transaction;value tomorrow,which quotes the rate when settlement will occur on the first business day following the transaction;spot rate,which quotes the rate when settlement will occur two business days after the transaction;and forward exchange rate,which quotes the rate used in a forward contract when settlement is more than two business days after the transaction.

The Type of Rate That Quotes the Rate Used in a Forward