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Sir, I don’t understand why we are buying pounds at the lower rate in example 8 under currency futures .I thought we are to buy at the lower spot rate and sell at the higher spot rate. please explain. Thanks
But we are not buying pounds at the lower rate – we are buying at the higher rate.
Given that the exchange rate is quoted as $’s per Pound, then we buy $’s at the lower rate and sell $’s at the higher rate.
Here they are buying Pounds and therefore selling $’s.Have you watched my free lectures on this chapter? I work through all the examples in the lectures, and explain and expand on the notes. There is no point in using the lecture notes without also watching the lecture.
okay sir ..Thank you. I actually wanted to ask why we were buying at the higher rate. It was a mistake .
yes sir I have watched the video tutorial on this chapter but did not understand …. I actually wanted to ask why we were buying at the higher rate. My initial question was a mistake .
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