Answer: 1.4764

To calculate the forward rate from forward points, divide the points by 10,000 (to adjust for the fourth decimal place in the spot quote) and add the result to the spot rate. Since the forward points are negative (-16.0), the calculation is: -16/10,000 + 1.4780 = -0.0016 + 1.4780 = 1.4764. This aligns with the arbitrage relationship between spot and forward exchange rates, where forward rates adjust for interest rate differentials. Option A incorrectly divides by 100, while Option C treats the points as positive.

Author: LeetQuiz Editorial Team