The forward price of currencies can be either higher, lower or even the same as the spot price.

Question

Quizplus · Accepted Answer

The forward price of currencies can be higher or lower than the spot price depending on market conditions and expectations. However, it is also possible for the forward and spot price to be the same, especially for currencies that are not expected to see significant changes in value over a certain period of time.

The Forward Price of Currencies Can Be Either Higher, Lower