Multiple Choice
Suppose that two counterparties, A and B, enter a three-month forward contract, whereby A sells USD1 million at a forward rate of AUD/USD 1.7662.
Which party is likely to default if the spot rate three months hence is 1.8000?
A) counterparty A
B) counterparty B
C) both counterparty A and counterparty B
D) neither counterparty
Correct Answer:
Verified
Correct Answer:
Verified
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Q14: The Australian dollar futures contract was not
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Q16: The development of swaps was assisted by:<br>A)
Q18: A cross currency interest rate swap involves:<br>A)
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