heloo Sir! i just want to ask a simple question . how will we know that which spot rate to use higher or lower when the company will recive some paymnt on some date from someone and when when compny will pay some cash to someone ! and what are the logics and reasons of selecting those spot rates
I do explain which of the rates to use, and the logic behind it (together with working though several examples) in the first of my lectures on foreign exchange risk management.
You cannot expect me to type out all of my lectures here 🙂
(Our free lectures are a complete course for Paper F9 and cover everything needed to be able to pass the exam well)