Are the Forward Points Significantly Affected by Changes in the Spot

question 299

Multiple Choice

Are the forward points significantly affected by changes in the spot rate?

• A) Never
• B) For very large movements and longer terms
• C) Always
• D) Spot is the principal influence

---

Definitions:

Highest Initial Price

A pricing strategy where a new product is introduced to the market at a high price before possibly lowering it later based on demand and competition.

Innovative Product

A new or significantly improved product that introduces a novel feature or fulfills a specific need in a new way.

Skimming Pricing

A pricing strategy where a high price is set for a new product to maximize profits from segments willing to pay more, before prices are lowered over time.

Demand-oriented

A pricing strategy where prices are set based on the perceived value to the customer or demand for the product, rather than on the cost of the product or market competition.