An FX Forward Outright Has Been Dealt for a Value

question 375

Multiple Choice

An FX forward outright has been dealt for a value date which is subsequently declared to be a bank holiday. According to the Model Code, the exchange rate for the deal:

• A) should be adjusted to take account of the change in value date
• B) cannot be adjusted if one of the counterparties wishes to adjust the rate but the other wishes to keep the original rate
• C) must be adjusted if one of the counterparties wishes to adjust the rate but the other wishes to keep the original rate
• D) should be adjusted if the adjustment is for two days or longer but not if it is for only one day

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Definitions:

Environmental Influences

Factors within the environment, such as social, physical, and cultural elements, that can affect an individual’s behavior, development, and well-being.

Genotype

The genetic makeup of an organism, consisting of both the genes visible in the traits and those that are latent.

Phenotype

The observable characteristics or traits of an organism that are produced by the interaction of its genotype with the environment.

Peripheral Nervous System

The network of nerves that lies outside the central nervous system, connecting it to limbs and organs.