(1) Is the date of actual transaction the date you buy or sell the contract?
(2) What is the term of transaction to be hedged? Is it from the date of actual transaction to the amount the loan is paid out or the date the money is needed for another project?
I was doing Dec 2013 past papers (Awan) and Pilot paper (Alecto) and Dec 2008 (Phobos)
Your help would be greatly appreciated . Thanks
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Foreign Exchange Rate Risk
10y ago#1With foreign exchange futures, you start the futures deal 'today' and you close the deal on the date that the money is actually converted.
I really do suggest that you watch our free lectures - they explain all of this in detail.
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