Future vs Forward Contracts: Foreign Currency Considerations
Not what you're looking for?
Why are foreign currency futures contracts more popular with individuals and banks while foreign currency forwards are more popular with businesses?
Purchase this Solution
Solution Summary
This solution describes the difference between future contracts and forward contracts in the context of foreign currency transactions. It also explains why businesses and individuals prefer different types of derivatives.
Solution Preview
Forward contracts are non-transferable agreements to exchange currency of a specific quantity, at a specific rate, on a specific date. They typically are "delivered," meaning the agreement is actually executed through the physical (well, maybe not "physical," but at the least ELECTRONIC) transfer of ...
Purchase this Solution
Free BrainMass Quizzes
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.