netting rate

This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
November 28, 2020 at 1:23 am #596782
adamliew
Member
- Topics: 20
- Replies: 11
hi john, i just wondering, why calculating the netting is using spot rate (current) not using spot rate in 3 month time ? because the question mention these subsidiary are due to pay in 3 month time.
to calculate the actual pay in 3 month of netting, 3 month of forward will be accurate right ?
but the answer is using spot rate
from question june 2013 question 3
November 28, 2020 at 10:09 am #596820
John Moffat
Keymaster
- Topics: 57
- Replies: 54856
In part (a) the answer does use the forward rate.

For part (b) the question says (in the last line of the first paragraph) to use spot rates.
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.