Question
A dealer buys USD 1,000,000 forward for delivery in, two months at AUD 1.2335/USD and simultaneously sells USD 1,000,000 forward for delivery in three months
A dealer buys USD 1,000,000 forward for delivery in, two months at AUD 1.2335/USD and simultaneously sells USD 1,000,000 forward for delivery in three months at AUD 1.2385/USD. This foreign exchange transaction is equivalent to:
- Buying two months USD forward at AUD 1.2335/USD and selling three months AUD forward at USD 0.8074/AUD
- Selling two-months USD forward at AUD 1.2335/USD and buying three months AUD forward at USD 0.8074/AUD
- Selling two-months USD forward at AUD 1.2335/USD and selling three months AUD forward at USD 0.8074/AUD
- Buying two-months USD forward at AUD 1.2335/USD and buying three months AUD forward at USD 0.8074/AUD
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Financial Freedom
Authors: Timothy Turner
1st Edition
1801573573, 978-1801573573
