A Forward/forward FX Swap

question 122

Multiple Choice

A forward/forward FX swap:

• A) is a contract by which the maturity of a regular FX swap can be extended at an historic (noncurrent) rate
• B) is a swap transaction where the near leg is traded either value today or value tomorrow and the far leg is traded spot
• C) is a swap that does not start spot and where both the near and the far leg are traded forward
• D) is a transaction by which a maturing outright forward FX is prolonged at an historic (non-current) rate

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Definitions:

Paradox Of Voting

A situation in rational-choice theory where individual votes have little impact on the outcome, yet people still participate in elections.

Median-Voter Model

A political theory suggesting that the outcome of majority rule voting systems will represent the preferences of the median voter.

Public Good

A good that is non-excludable and non-rivalrous, meaning it can be enjoyed by all members of society without reducing its availability to others.

Majority Vote

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