Answered step by step
Verified Expert Solution
Question
1 Approved Answer
QUESTION 1 The differential between the SPOT quote of two currencies, and the FORWARD rate quoted for delivery sometimes in the future depends mainly on?
QUESTION 1 The differential between the SPOT quote of two currencies, and the FORWARD rate quoted for delivery sometimes in the future depends mainly on? The difference in the prevailing interest rates being offered in each currency O how strong each currency has been historically O the political leanings of each country O all of the above QUESTION 2 When trading FX Derivatives Over-The-Counter (OTC) Only the buyer and seller know about it A A contractual relationship must exist between the parties, controlling the posting of COLLATERAL MARGIN to protect each other Unwinding the trade would requlre a new agreement between the original parties The amount of the trade and the day of maturity are completely open to be agreed by the parties Pricing may not be as tight as in an Exchange All of the Above QUESTION 3 When trading FX Futures on an Exchange The amounts purchased or bought are standarized Maturities are set on a fixed expiration day The posting of Margin, Initial and Variation (Gain or Loss), occurs automatically and nightly by the Exchange All of the Above QUESTION 4 What is the Name of the organization that produces the most common and standard framework governing the relationship of participants in the OTC derivatives market? UEFA OCDE ISDA XFL
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started