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:

Exclusionary Rule

A legal principle in the United States that prevents the government from using evidence gathered in violation of the Constitution in court.

Mapp

Relates to Mapp v. Ohio, a landmark Supreme Court case decided in 1961 that established the rule excluding illegally obtained evidence from being used in court under the Fourth Amendment.

Levels of Government

The division of government responsibilities into distinct branches (local, state, and federal) to prevent any one branch from exercising the core functions of another.

Exclusionary Rule

A legal principle in the United States that prohibits the use of evidence obtained in violation of the defendant's constitutional rights from being used in a court of law.