foreignexchangeinstruments,measuringandmanagingforeign（6页）.docVIP

FOREIGN EXCHANGE INSTRUMENTS, MEASURING AND MANAGING FOREIGN EXCHANGE EXPOSURE FORWARDS, FUTURES, OPTIONS, SWAPS AND EXPOSURE HEDGING A forward contract is an agreement between two parties to buy or sell an asset in the future. A futures contract is a version of a forward contract that has been standardized. Futures contracts are listed on an exchange. There are several distinctions between forward and futures contracts. First, forward contracts are generally traded by large institutional investors who are geographically dispersed, while futures contracts trade on centralized exchanges