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in forward rate why we use 125.3 instead of 128.6.
As per my understanding if its a foreign currency receipt i.e EURO in this case the bank will BUY at higher rate ..They are receiving Euros and will therefore sell Euros and buy Yen. 125.2 is the correct rate to use.
I suggest that you watch the first of my lectures on foreign exchange risk management where I spend time on explaining which rate to use depending on how the exchange rate is quoted.
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