Question
The current spot exchange rate is $1.55/ and the three-month forward rate is $1.50/. You enter into a Non Deliverable Forward (NDF) short (sell) position
The current spot exchange rate is $1.55/ and the three-month forward rate is $1.50/. You enter into a Non Deliverable Forward (NDF) short (sell) position on 1,000. At maturity, the spot exchange rate settles at $1.60/. How much did you gain or lose?
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
