[lama231]

Hello I have a question about why is it a sell future contract?

I know it is a silly question, and I do not have the problem of determining what kind of contract it is in any other question ive attempted except for this one for some reason. It is a borrowing, so wouldn’t that mean I am looking to buy Euros?

thanks

[lama231]

Hello,

Just a quick question. A forward rate agreement (FRA) is the same as a forward market hedge right? (two different names for the same thing)?

Thanks

[lama231]

Thank you very much for your reply

Yes, I do understand that it is relevant to to both options and futures in both currency and interest rate. I guess what I should have asked is (based on what I have noticed when solving past papers and the answers provided) the amount under-hedged or over-hedged is only computed in questions on currency options, right?

Thank you again

[lama231]

I have a question about options hedging, why is it that under and over hedging is only relevant for options contracts?

Also, is it for only currency options contract that we take over or under hedging into account or also for interest rate options?

Thanks

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