Dealers quote forward rates as 'points' representing the difference between the forward rate and the spot rate.

Name: Dealers quote forward rates as 'points' representing the difference between the forward rate and the spot rate.
Brand: Quizplus
Rating: 4.8 (49 reviews)

Question

Quizplus · Accepted Answer

This is a correct statement. Dealers use points to represent the difference between the forward rate and the spot rate. The points are then added to or subtracted from the spot rate depending on whether the forward rate is higher or lower than the spot rate.

Dealers Quote Forward Rates as 'Points' Representing the Difference Between