Question

essay about Foreign Currency Futures.

essay about Foreign Currency Futures.

Homework Answers

Answer #1

Below it is written about currency futures, its basics, uses, margin.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
To hedge receivable in a foreign currency, a firm may sell a currency futures contract for...
To hedge receivable in a foreign currency, a firm may sell a currency futures contract for that currency. Group of answer choices True False
Foreign currency market participants in the futures market wishing to lock in a price at which...
Foreign currency market participants in the futures market wishing to lock in a price at which they could _______ a foreign currency will ________ a futures contract. a) buy; sell b) sell; sell c) sell; buy d) All of the above  
1. Explain the difference between foreign currency options and futures and when either might be most...
1. Explain the difference between foreign currency options and futures and when either might be most appropriately used
A foreign currency __ contract calls for the future delivery of a standard amount of foreign...
A foreign currency __ contract calls for the future delivery of a standard amount of foreign exchange at a fixed time,place,and price A. Futures B. Forward C. Option D. Swap
To hedge a foreign currency receivable, A. buy call options on the foreign currency with a...
To hedge a foreign currency receivable, A. buy call options on the foreign currency with a strike in the domestic currency. B. buy put options on the foreign currency with a strike in the domestic currency. C. sell call options on the foreign currency with a strike in the domestic currency. D. sell put options on the foreign currency with a strike in the domestic currency.
Which is true of foreign currency forward contracts and foreign currency options? Foreign currency forward contracts...
Which is true of foreign currency forward contracts and foreign currency options? Foreign currency forward contracts Foreign currency options ? Question 5 options: ?Requires up-front fee Requires up-front fee ?Party may “walk” if “out of the money” Party may “walk” if “out of the money” ?Requires no up-front fee Party may “walk” if “out of the money” Represents a right rather than a legal obligation Requires up-front fee
A country's currency depreciates relative to a foreign currency if it takes more of the home...
A country's currency depreciates relative to a foreign currency if it takes more of the home currency to buy the foreign currency. it takes less foreign currency to buy the home currency. the prices of goods in the home country increases faster than in the foreign country. Both it takes more of the home currency to buy the foreign currency and it takes less foreign currency to buy the home currency are correct.
Exchange rates can be quoted as foreign currency per unit of domestic currency or domestic currency...
Exchange rates can be quoted as foreign currency per unit of domestic currency or domestic currency per unit of foreign currency. Unless otherwise stated, we adopt the convention that is given in your textbook, that is, we define exchange rates as domestic currency per unit of foreign currency. Using the dollar and euro as a currency pair, the bilateral exchange rate is E$/€, expressed as dollars per euro. a. Suppose that the initial exchange rate is given as $1/€1, i.e.,...
Consider the following sequence of prices for a currency futures contract. Each contact involves 10,000 units...
Consider the following sequence of prices for a currency futures contract. Each contact involves 10,000 units of the foreign currency. The initial and maintenance margin requirements are USD 800 and USD 500, respectively. Assume that the position was entered at a price of 1.62 and that the futures contract is held to expiration, which is in day 6          Day         Futures             Price 1          1.65 2          1.66 3          1.64 4          1.63 5          1.61 6          1.60 Calculate the margin account balances on day 3 for the short.
Essay type question: Discuss the techniques that a company might use to hedge against the foreign...
Essay type question: Discuss the techniques that a company might use to hedge against the foreign exchange risk involved in foreign trade. Discuss the factors that may persuades a company to hedge an interest rate exposure by using Over-the-Counter (OTC) options rather than exchange traded interest rate futures contracts.