In an FX forward in which a foreign currency is being bought at less than the spot rate, a discount exists.

Name: In an FX forward in which a foreign currency is being bought at less than the spot rate, a discount exists.
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

Quizplus · Accepted Answer

In FX forwards, if the forward rate at which a currency is bought is less than the current spot rate, it indicates that the currency is being bought at a discount relative to its current value.

In an FX Forward in Which a Foreign Currency Is