Page 39 - FINAL CFA SLIDES DECEMBER 2018 DAY 6
P. 39
Session Unit 5:
20. Currency Exchange Rates
LOS 20.e: Convert forward quotations expressed on a points basis or in percentage terms into an
outright forward quotation, p.160
Example: Forward exchange rates in points: So AUD/EUR = 0.7313 with the 1-year forward
rate quoted at +3.5 points. What is the 1-year forward AUD/EUR exchange rate?
Example: Forward exchange rates in percent, p.161: The AUD/EUR spot rate is quoted at
0.7313, and the 120-day forward exchange rate is given as –0.062%. What is the 120-day
forward AUD/EUR exchange rate?
