What is a currency forward contract?
What will be an ideal response?
Answer: A currency forward contract is a contract that sets the exchange rate in advance. It is usually written between a firm and a bank, and it fixes a currency exchange rate for a transaction that will occur at a future date.
Business
You might also like to view...
Which of the following protects a policyowner from a misrepresentation caused by an innocent mistake?
A) Reinstatement clause B) Entire Contract clause C) Incontestable clause D) Nonforfeiture clause
Business
Eugene holds a collect-on-delivery call with S = $36.50, K = $35, ? = 0.22, r = 0.04, div = 0 and 270 days until expiration. What is the value of the European COD call?
A) $5.90 B) $6.90 C) $7.90 D) $8.90
Business