Question
Bank dealers in conversations among themselves use a shorthand notation to quote bid and ask forward prices in terms of forward points. This is convenient
Bank dealers in conversations among themselves use a shorthand notation to quote bid and ask forward prices in terms offorward points.This is convenient because
A. forward points may remain constant for long periods of time, even if the spot rates change frequently.
B. Forward points may remain constant for long periods of time, even if the spot rates change frequently, and in swap transactions where the trader is attempting to minimize currency exposure, the actual spot and outright forward rates are often of no consequence.
C. in swap transactions where the trader is attempting to minimize currency exposure, the actual spot and outright forward rates are often of no consequence.
D. forward points may change faster than spot and forward quotes.
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