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does anybody understand the answer to the following actually easy question?
80m EUR receivable in 6 months time.
Currency Futures (contract size EUR 125,000, quotation JPY per EUR 1):
Four-month expiry 126.9
Seven-month exp. 125.2
What is the expected receipt in JPY?
Why do they just calculate the expected futures rate of 125.8 and then calculate the receivable by 125,000 EUR x 640 contracts x 125.8 = JPY 10,064?
I thought for that you need to 1) calculate the receivable at the current spot rate, which we do not know in this case, but could calculate 2) calculate the gain / loss of the futures deal, for which we would indeed need the calculated expected futures rate of 125.8
But why is the receivable calculate by simply taking the 125.8? I am confused…