ACI Dealing Certificate (#394)

Assuming a flat yield curve in both currencies, when quoting a 1- to 2-month forward FX time option price in a currency pair trading at a discount to a customer:

you would take as bid rate the bid side of the 2-month forward and as offered rate the offered side of the 1-month forward
you would take as bid rate the offered side of the 2-month forward and as offered rate the bid side of the 1-month forward
you would take as bid rate the offered side of the 1-month forward and as offered rate the offered side of the 2-month forward
you would take as bid rate the bid side of the 1-month forward and as offered rate the bid side of the 2-month forward