Mexico forward exchange market
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What are the implications of the absence or presence of a forward exchange market in Mexico?
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Solution Summary
A discussion of the implications of the forward exchange market in Mexico.
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The presence of Forward exchange market in Mexico is very much useful. The "forward" exchange rate is the price for exchange to take place at some specific time in the future, often 30, 90, 180 days. Thus a forward exchange contract is an agreement to exchange one currency for another at some specified future date at an exchange rate set now (the forward exchange rate).
http://web.uconn.edu/cunningham/econ243/lecture02.ppt.
It helps in hedging the risk. The organization is exposed to market risk from changes in ...
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