The Currency Derivatives Market必看课件资料.ppt

Essential Reading P172-181 Currency Derivative Currency Forward Currency Future Currency Options Forward Contract A forward contract is an agreement between a corporation and a commercial bank to exchange a specified amount of a currency at a specified exchange rate (called the forward rate) on a specified date in the future. Forward Contract When a firm anticipate future need or future receipt of a foreign currency, they can set up forward contracts to lock in the exchange rate, hedge the risk. Forward Market Forward contracts are used to reduce the risk that foreign exchange rate change w