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Basic Question 14 of 20
Which statement is true regarding the forward points?
B. Forward points are commonly quoted in fractions of 1/100.
C. The longer the term of the forward contract, the larger the absolute number of forward points.
A. Forward points need to be annualized.
B. Forward points are commonly quoted in fractions of 1/100.
C. The longer the term of the forward contract, the larger the absolute number of forward points.
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I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
explain spot and forward rates and calculate the forward premium/discount for a given currency;
calculate the mark-to-market value of a forward contract;
CFA® 2025 Level II Curriculum, Volume 1, Module 8.