The "Spot Basis" of a 2 Against 4 Months EUR/USD

question 10

Multiple Choice

The "spot basis" of a 2 against 4 months EUR/USD forward/forward swap is:

• A) usually the current spot EUR/USD mid-market rate
• B) commonly the prevailing 4-month forward EUR/USD mid-rate
• C) always the forward EUR/USD bid rate of the first swap leg
• D) generally the prevailing 2-month forward EUR/USD mid-rate

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Definitions:

Inferior Projection

A downward anatomical direction or extension from a main structure.

Vertebrae

are the series of small bones forming the backbone, providing support and protecting the spinal cord.

Acromion Process

A bony prominence on the scapula (shoulder blade), forming the highest point of the shoulder and connecting with the collarbone.

Articulation

The point where two bones meet or connect, allowing for varying degrees of movement or stability.