Forward rate agreement Flashcards

1
Q

What does a discount on a FRA indicate?

A

It indicates that the GBP will weaken (go down) in the future

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What does a premium on a FRA indicate?

A

It indicates that the GBP will strengthen (go up) in the future

How well did you know this?
1
Not at all
2
3
4
5
Perfectly