Dear Sir,
I was going through technical article in regards to foreign exchange derivatives.
There i saw on example on future
here you have to $6.65m and the current spot rate is 1.71110. sept exp 1.71035 and Dec expiry 1.70865.
I could not understand how did he manage to get august spot rate - 1.65770 and september future price. 1.6570.
i tried with different basis but could not get those figures. could you kindly explain and help please.
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Future spot rate and future price
10y ago#1Without seeing the full example, I am not able to help you.
Please either give me a link or copy out the whole question :-)
Dear Sir,
Here is the link
https://www.accaglobal.com/sg/en/student/exam-support-resources/professional-exams-study-resources/p4/technical-articles/exchange-derivatives.html
10y ago#3The article could be laid out better, because the writer has not calculated spot rate and futures price on 29 August - he is giving the figures. Obviously in real life they could be anything, but the writer is inventing those figures in order to be able to illustrate how the futures are used.
If you haven't already watched, then the free lectures on this website go through everything you need for the exam with regard to foreign exchange risk management.
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