Question
You enter an NDF to sell UYU (Uruguayan Peso) for $.0336/UYU. The contract size is UYU50,000,000 and the contract matures in six months. If the
You enter an NDF to sell UYU (Uruguayan Peso) for $.0336/UYU. The contract size is UYU50,000,000 and the contract matures in six months.
If the spot rate is $.0325/UYU in six months, will you owe the bank money, or will the bank owe you money? How much in total?
If the spot rate is $.0341/UYU in six months, will you owe the bank money, or will the bank owe you money? How much in total?
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Dark Finance
Authors: Fabio Mattioli
1st Edition
1503611655, 978-1503611658
