I am finding it difficult to know when we sell futures and when we buy it, please also help me how I will know if it is a put options and call options, in interest and currency derivatives. Thanks
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FOREX Derivatives
11y ago#1The answers to all of your questions are explained in detail in our free lectures on foreign exchange risk and interest rate risk.
I am sorry, but I cannot possibly type out all of the lectures here. You really should watch them - they do not cost anything!
i use lock in rate to calculate closing future but the problem is that i don't know when to add or subtract the remaining basis to the opening future price.
11y ago#3The way to decide is this:
The futures price and the spot price will get closer together during the life of the future.
So the lock-in rate will always be between the current spot and the current futures price. So add or subtract - whichever makes the lock-in rate between the two.
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