A company that is uncertain about the exact date when it wil
Question and Solution
A company that is uncertain about the exact date when it will pay or receive a foreign currency may try to negotiate wit
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A company that is uncertain about the exact date when it will pay or receive a foreign currency may try to negotiate with its bank a forward contract that specifies a period during which delivery can be made. The company wants to reserve the right to choose the exact delivery date to fit in with its own cash flows. Put yourself in the position of the bank. How would you price the product that the company wants?
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