Which of the Following Is NOT True Regarding Nondeliverable Forward

question 67

Multiple Choice

Which of the following is NOT true regarding nondeliverable forward (NDF) contracts?

• A) NDFs are used primarily for emerging market currencies.
• B) Pricing of NDFs reflects basic interest rate differentials plus an additional premium charged for dollar settlement.
• C) NDFs can only be traded by central banks.
• D) All of the above are true.

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