Which of the Following Is True of Forward and Spot

question 25

Multiple Choice

Which of the following is true of forward and spot rates?

• A) The premium or discount is usually 7-10%.
• B) Spot and forward transactions generally occur on the organized exchange.
• C) The length of a forward and spot contract is generally between zero and six months.
• D) Both the forward and spot rate occur in the over-the-counter market.

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