What do we mean by the expected future spot rate how


1. What is a forward exchange rate? When does delivery occur on a 90-day forward contract?

2. If the yen is selling at a premium relative to the euro in the forward market, is the forward price of EUR per JPY larger or smaller than the spot price of EUR per JPY?

3. What do we mean by the expected future spot rate?

4. How much of the probability distribution of future spot rates is between plus or minus 2 standard deviations?

5. If you are a U.S. firm and owe someone ¥10,000,000 in 180 days, what is your transaction exchange risk?

6. What is a spot-forward swap?

7. What is a forward-forward swap?

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Finance Basics: What do we mean by the expected future spot rate how
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