Hi, I would like to knw why future prices may move different amount from the price of the currency considered as a practical problem? Can explain it to me with example?
Also, since future contract is exchange-traded, does it means it can be sell before the settlement date ? If that is the case, why future contracts still cannot take advantage of favourable currency movement? I don't understand about it.
Thanks
Ask the Tutor ACCA AFM
Futures
This is all explained in my free lectures on foreign currency risk management and on interest rate risk management - together with many examples.
You cannot really expect me to type out all of my lectures here :-)
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