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Problem ne le: Wea. is the deng dille eure he: ween the future and sool exchange markets! On spot. exchange markers, we do exchange currencies
Problem ne le: Wea. is the deng dille eure he: ween the future and sool exchange markets! On spot. exchange markers, we do exchange currencies tocar and use ceday's exchange rate. On future exchange market. we agree today on an exdeng of currentice that will weu e in u try jill " apedied care; and we agree on an exchange Twoe need for the Yanswation, The exchange Tyre is called forward exchange -ule (h) Why en firms want to any foreign currency forward? Provide an example. Pirate bay umraney forwards co protect themselves agrinst. future movements in exchange rates. horra. It buys a smartphone for 400, 000 Woes and. sally i: for 500 Bulass. The spor coochange Dollar " : is 900Wons app Blue and on each anartsle . well.. 500Dollars - 400,000Wong . Dollars 90QW ons 55.5 Dollars; however, car transaction wi.. cake: place in theer montes sad the company is aToid Dollar of Dollar depcurial likeera: in Won rechange run. Illa melange rate: deemerge. In 750Wons. Dollar the arn't. no rama amartphone will he 500 Dollars - 400, 000Wong. Dollars = -33.3Dollars. an the company will be in a loss. To avoid the use. the company can wear a forward exchange contract
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