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PPPT and IRP

Mmansoor9y ago
again, a simple question... in the formulas given, what is the difference between a forward rate (F0) and expected spot rate (S0)? thank u!
Mmansoor9y ago#1
sir..this awaits u .. :)
John MoffatJohn MoffatTutor9y ago#2
Sorry - I obviously missed this question :-( The forward rate is a rate quoted now to apply to a transaction occurring on a future date. The expected spot rate is what we think that the spot rate will be on the future date.
Mmansoor9y ago#3
no problem sir...thank u
John MoffatJohn MoffatTutor9y ago#4
You are welcome :-)
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