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QUESTION 18 The USD/CAD spot rate is USD 0.7500 - USD 0.7505. The 6-month forward points are 10-20. What is the outright 6-mo
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Answer #1

Given USD/CAD spot rate = 0.7500 – 0.7505

6 month forward point = 10-20

Forward points are added to spot rate to arrive at forward quotation.

Forward quotation = 0.7500+0.0010 - 0.7505+0.0020

= 0.7510 - 0.7525

Thus, correct answer is USD 0.7510 – USD 0.7525

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