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 ..
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Dec-2018-washi-part1
6y ago#1They 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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