"contract" in inglés with examples - Collocation dictionary inglés
- These concerns turned to simple financial instruments like the forward contract to stabilize their earnings.
- In short, the forward contract is neither very liquid nor very marketable.
- Hedgers are interested in reducing risk, and thus will accept losing money on their forward contracts.
- Then the forward contract is negotiated and agreed upon by both parties.
- However, the bank can also use an exchange traded futures contract to further reduce its risk in taking on the forward contract.
- In the case of physical delivery, the forward contract specifies to whom to make the delivery.
- The bank with which the exporter makes the forward contract must itself hedge its position, otherwise it too will be exposed to currency risk.
- The forward contract would mature at the time when it was proposed to change back into sterling from lire.
- Any change in the forward rate, however, changes the value of the forward contract.
- In this example, the exchange rate climbed in both years, increasing the value of the forward contract.
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