Available under Creative Commons-ShareAlike 4.0 International License.
A number of currencies are traded, like other commodities, on a daily basis. These are the British pound, the Canadian dollar, the deutsche mark, the Dutch gilder, the French franc, the Japanese yen, the Mexican peso, and the Swiss franc. Futures are used by banks that buy (put) and sell ( call) large quantities of foreign currencies.
Figure 12.5 A Hedge: Selling 500 FC on January 1 for Delivery on December 31 (spot rate = $1 IFC; forward rate = $1 .05/FC)
- 1065 reads
