Sir, I would like to know how to differentiate future expected receipt/payment ?
As sometimes I saw is AMOUNT/FUTURE SPOT RATE ; while sometimes is CONTRACT IN*CONTRACT SIZE. How to differentiate between this two.
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future expected received
5y ago#1It depends whether or not futures are being used to hedge the risk.
You need to watch my free lectures on the management of exchange rate risk - they work through everything needed to the exam.
future always need to exercise right?
5y ago#3Yes, it must be exercised. It can be exercised at any time up to the date that the future matures.
Have you watched my lectures on this?
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