- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 8. Exchange Rate Calculations
- Subject 2. Forward Rate Calculations
CFA Practice Question
If the forward rate is lower than the spot rate, the price currency is said to be trading at a ______.
A. forward premium
B. forward discount
C. spot discount
Explanation: Note that the base currency, not the price currency, is said to be trading at a forward discount.
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