Question no. 34 in the End of Chapter questions in CRM , (Rosalie Delgado. Rivera). The solution provided is wrong or ambiguous
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Treatment of FX swap is not consistent.Its not specifically addressed by the LOS.
They have simply followed the bid ask rules here…
It’s a buy sell mismatched swap…
They wanted to buy USD spot ie sell Euro spot…so they choose the bid rate
They wanted to Sell USD forward…ie buy EURO forward and so they took the ask rate.
The bid-ask rate is multiplied, should’nt it be divided since the base currency is in EUR and the position is in USD?
The bid-ask rate is multiplied, should’nt it be divided since the base currency is in EUR and the position is in USD?
It says it is a practice problem, but I don’t see it in the curriculum. There are only 24 questions in the end of chapter of CRM. Right ?