Operation of currency forward and futures market
Describe basic differences between operation of a currency forward market and a futures market.
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Forward market is an OTC market where forward contract for the sale or purchase of foreign currency is tailor-made between the client and its international bank. No money changes hands up till the maturity date of the contract when the delivery and receipt are generally made. A futures contract is an exchange-traded instrument with the standardized attributes stating the contract size and the delivery date. Futures contracts are marked-to-market daily in order to reflect the changes in settlement price. Delivery is made sometimes in the futures market. Instead a reversing trade is made to close out a short or long position.
A listing of the liabilities, assets, and equity of an entity at a point in time, the end of a month, or quarter, or year. It is one of the four financial statements required in a full financial report. The balance sheet gives the reader what the entity owns (assets)
Specify some of instances under FASB 52 that foreign entity’s functional currency would be same as the parent firm’s currency.
When you have visited the London, you have purchased a Jaguar for £35,000, which is payable within the three months. Enough cash is there at your bank in the New York City that pays 0.35% of interest per month, compounding monthly, to pay for car. Presently, spo
The Webster Company uses the aging method to estimate the allowance for doubtful accounts. The following schedule of accounts receivable was prepared as at December 31, 20x6: Age Balance %
It is extremely difficult in order to forecast future exchange rates more precisely as compared to forward exchange rate or to the current spot exchange rate, as per the researchers. How these findings can be interpreted?
Atypically large proceeds made by an individual or company from commercial activity. An abnormal profit exceeds the normal chance for profit derived from labor costs and capital and considered normal profit. Abnormal profit in a business resides of monopoly and consortium profits.
A CD/$ bank trader is presently quoting a small figure bid-ask of 35-40, while rest of the market is trading at the CD1.3436-CD1.3441. Specify what all is implied about trader’s beliefs by his prices?
Define Expenditures with suitable example?
Describe the History of Holding Period in brief?
Explain the Maximum factors influences and involvement which will depend on the performance and success of the employees ?
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