Question
A U.S. trader enters into a long one-year forward contract on the Russian ruble at a rate of $0.0161. Now, three months later, the forward
A U.S. trader enters into a long one-year forward contract on
the Russian ruble at a rate of $0.0161. Now, three months later,
the forward price of a ruble expiring at the same time is
$0.0166. The U.S. interest rate is 0.65%, and the contract
notional is $30 million. Find the value of the contract.
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Money Talks Explaining How Money Really Works
Authors: Nina Bandelj ,Frederick F. Wherry ,Viviana A. Zelizer
1st Edition
0691202893, 978-0691202891
