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Basic Question 3 of 14

Which of the following is an agreement to trade currencies based on the exchange rate today for settlement within two business days?

A. Triangle arbitrage transaction
B. Spot trade
C. Forward trade

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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

Learning Outcome Statements

explain the arbitrage relationship between spot and forward exchange rates and interest rates, calculate a forward rate using points or in percentage terms, and interpret a forward discount or premium

CFA® 2024 Level I Curriculum, Volume 1, Module 8.