A. Incorrect because the forward points are scaled down by 1,000 instead of 10,000: 4.6895 + (-12.7/1,000) = 4.6895

• 0.0127 = 4.67680 B. Correct because to convert any of these quoted forward points into a forward rate, one would divide the number of points by 10,000 (to scale down to the fourth decimal place, the last decimal place in the spot quote) and then add the result to the spot exchange rate quote 4.6895 + (-12.7/10,000) = 4.6895 - 0.00127 = 4.68823. C. Incorrect because the forward points are subtracted from the spot rate: 4.6895 - (-12.7/10,000) = 4.6895 + 0.00127 = 4.69077.