sir, for hedging questions.
For Futures we get 1 mark for stating that we should go for sell or buy but do we need to state any reason for which we selected (to go for sell or buy)?
similarly for FRA why we selected (ex 1.01 this rate)? do we need to state any reason?
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General query
i have another question, sir suppose my currency is in "yen" and i am about to receive "euro". SO if the euro depreciates what is the risk i am having?
For your first post - no you do not need to state reasons to get the mark.
For your second question, if the euro depreciates then when the receipt is converted you will receive less yen.
thanks sir..
You are welcome :-)
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