Question

    A and B exchange currency at a rate that takes place after a period of 1 month from spot date. What is the rate called in such case?

    A Beyond Rate Correct Answer Incorrect Answer
    B Subsequent Rate Correct Answer Incorrect Answer
    C Succeeding Rate Correct Answer Incorrect Answer
    D Forward Rate Correct Answer Incorrect Answer
    E Offer Rate Correct Answer Incorrect Answer

    Solution

    Forward Rate is the rate applicable in case exchange is taking place after spot date. Generally expressed by indicating a premium or a discount for the forward period.

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