Restate the Following One-,Three-,And Six-Month Outright Forward American Term Bid-Ask

question 35

Multiple Choice

Restate the following one-,three-,and six-month outright forward American term bid-ask quotes in forward points: $$\begin{array} { l l l } S ( \$ / S F r ) & = & 0.8500 - 0.8505 \\F _ { 1 } ( \$ / S F r ) & = & 0.8505 - 0.8510 \\F _ { 3 } ( \$ / S F r ) & = & 0.8510 - 0.8520 \\F _ { 6 } ( \$ / S F r ) & = & 0.8515 - 0.8530\end{array}$$

• A) \(\begin{array} { | l | l | }
• \hline & \text { Forvard Point Quotations } \\
• \hline \text { One-Month } & 05 - 05 \\
• \hline \text { Three-Month } & 10 - 15 \\
• \hline \text { Six-Month } & 15 - 25 \\
• \hline
• \end{array}\)
• B) \(\begin{array} { | l | l | }
• \hline & \text { Forward Point Quotations } \\
• \hline \text { One-Month } & 05 - 05 \\
• \hline \text { Three-Month } & 05 - 10 \\
• \hline \text { Six-Month } & 05 - 10 \\
• \hline
• \end{array}\)
• C) \(\begin{array} { | l | l | }
• \hline & \text { Forward Point Quotations } \\
• \hline \text { One-Month } & 00 - 05 \\
• \hline \text { Three-Month } & 05 - 10 \\
• \hline \text { Six-Month } & 05 - 10 \\
• \hline
• \end{array}\)
• D)None of the above

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Definitions:

Price Reduction

A decrease in the selling price of goods or services, often to increase demand or meet competitor pricing.

Traceable Fixed Expense

A fixed expense that can be directly linked to a specific department, product, or activity without any allocation.

Net Operating Income

The profit generated from a business's operations after subtracting operating expenses from operating revenues.

Price Hike

An increase in the price of goods or services, often due to higher production costs or increased demand.