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Derivatives and Risk Management, 1st Edition
book

Derivatives and Risk Management, 1st Edition

by Sundaram Janakiramanan
May 2024
Intermediate to advanced content levelIntermediate to advanced
542 pages
27h 26m
English
Pearson India
Content preview from Derivatives and Risk Management, 1st Edition
Currency Futures 199
2. Forward contracts are exible and arranged according to the needs of the customer as to the con-
tract size and maturity. On the other hand, futures have a particular contract size and maturity. If
the amount of currency exposure If the amount of currency exposure is not an exact multiple of the
contract size of the futures contract or if the end-of-exposure date does not conform to the futures
contract maturity date, hedging with futures will result in basis risk. In this case, forwards are better
in achieving a perfect hedge.
3. In futures, the party that has exposure needs to post the margin and post additional ...
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Publisher Resources

ISBN: 9781299447547Publisher Website