1) Question (b), why the forward contract is said to be the same as (a) and why does the 5 months forward rate is not relevant ? I am not sure with the examiner’s answer.
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Frongoch Co (June 2022)
3y ago#1It is because for (b) we are looking at the situation on 1 August and the forward rate quoted on 1 August is not relevant because the transaction occurs on 1 August
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