Explain why a difference usually exists between a currency's spot rate and forward rate. Give two reasons

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Explain why a difference usually exists between a currency's spot rate and forward rate. Give two reasons this difference is usually positive when a company enters into a contract to receive foreign currency at a future date.

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Advanced Financial Accounting

ISBN: 978-0078025624

10th edition

Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker

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Question Posted: May 23, 2014 12:17 PM

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Explain why a difference usually exists between a currency's spot rate and forward rate. Give two reasons

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Advanced Financial Accounting

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