- CFA Exams
- CFA Level I Exam
- Study Session 5. Economics (2)
- Reading 18. Currency Exchange Rates
- Subject 4. Forward Calculations
CFA Practice Question
If the forward rate is higher than the spot rate, the price currency is said to be trading at a ______.
A. forward premium
B. forward discount
C. spot premium
Explanation: Note that the base currency, not the price currency, is said to be trading at a forward premium.
User Contributed Comments 2
| User | Comment |
|---|---|
| something | Good question |
| thanhb91 | Tricky question totally got me, beware guys |