- CFA Exams
- CFA Level I Exam
- Study Session 4. Economics
- Reading 10. Currency Exchange Rates: Understanding Equilibrium Value
- Subject 2. Foreign Exchange Forward Markets
CFA Practice Question
The bid/offer for the spot and forward points for the AUD/USD rates are:
Six-month forward: -8/4
Spot: 0.9669/0.9696
Six-month forward: -8/4
The six-month forward bid and offer rates are:
A. 0.9665/0.9692.
B. 0.9661/0.9692.
C. 0.9661/0.9700.
Explanation: Bid: 0.9669 - 0.0008. Offer: 0.9696 + 0.0004.
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