A trader in Switzerland just agreed to trade Swiss francs for British pounds based on today's exchange

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A trader in Switzerland just agreed to trade Swiss francs for British pounds based on today's exchange rate. The trade is expected to settle tomorrow. What term best describes this exchange?

Purchasing power parity

Arbitrage transaction

Interest rate parity

Spot trade

Forward trade.

Related Book For answer-question

International financial management

ISBN: 978-0324593471

9th Edition

Authors: Jeff Madura

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Posted Date: Jan 01, 2021 02:58 AM

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A trader in Switzerland just agreed to trade Swiss francs for British pounds based on today's exchange

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A spot rate is the settlement price for a spot contract ... View the full answer

International financial management

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