Compared to currency forward, the advantages of currency furture are
举一反三
- The __________ differential is approximately equal to the forward premium on a currency plus the interest rate differential. A: covered interest B: uncovered interest C: covered currency D: uncovered currency
- In the forward market, the exchange rate is agreed on at the time of the currency contract, but payment is not made until the future delivery of the currency actually takes place.
- The forward/forward swap means selling and buying simutaleously a certain foreign currency forward for a certain maturity date.
- If the forward exchange rate, defined as the domestic currency price<br/>of the foreign currency, is smaller than the spot exchange rate,<br/>there is a ( ). A: forward premium on the foreign currency. B: forward discount on the foreign currency. C: shortage of dollars. D: surplus of dollars.
- The primary reasons for a counterparty to use a currency swap are to play in the futures and forward markets.