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1) A Non-deliverable Forward Contract (NDF) provides a means of hedging a risk without there having to be any physical delivery of the two currencies
1) A Non-deliverable Forward Contract (NDF) provides a means of hedging a risk without there having to be any physical delivery of the two currencies involved. What are the settlement rules for a NDF contract? Select one: a. The calculation of the settlement amount is the contract notional amount [1- (forward rate/settlement rate)]. If settlement amount is >O then the seller of the NDF shall receive compensation from the buyer equal to the settlement amount. b. The calculation of the settlement amount is the contract notional amount [1- (forward rate/settlement rate)]. If the settlement amount is <0 then the seller of ndf shall receive compensation from buyer equal to settlement amount. c. calculation amount is contract notional [1 - (forward rate rate)]. if <0 d x [1->O then the seller shall pay the settlement amount to the buyer of the NDF and if the amount is
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