Which of the following factors influences the spread between forward and spot rates? a. which currency is denominated as the domestic currency b. the length of the forward exchange contract c. the current cross rate between the two currencies d. all are factors that may influence the spread
Which of the following factors influences the spread between forward and spot rates? a. which currency is denominated as the domestic currency b. the length of the forward exchange contract c. the current cross rate between the two currencies d. all are factors that may influence the spread
Chapter2: The Domestic And International Financial Marketplace
Section: Chapter Questions
Problem 10QTD
Related questions
Question
Which of the following factors influences the spread between forward and spot rates?
|
a. |
which currency is denominated as the domestic currency |
|
b. |
the length of the forward exchange contract |
|
c. |
the current cross rate between the two currencies |
|
d. |
all are factors that may influence the spread |
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