Question
1. A trader enters into a long forward contract on 10 million yen. The forward exchange rate is $0.018 per yen. How much does the
1. A trader enters into a long forward contract on 10 million yen. The forward exchange rate is $0.018 per yen. How much does the trader gain or lose if the exchange rate at the end of the contract is (a) $0.016 per yen; (b) $0.02 per yen?
2. What are 2 differences between forwards and futures?
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Valuation Measuring and managing the values of companies
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
5th edition
978-0470424650, 9780470889930, 470424656, 470889934, 978-047042470
