A dealer buys EUR5,000,000 forward
for Euro for delivery in, two months at EUR0.5556/USD and simultaneously
sells $EUR,000,000 forward for delivery in three months at
EUR0.5545/USD. This foreign exchange transaction is equivalent to

Question

A dealer buys EUR5,000,000 forward
for Euro for delivery in, two months at EUR0.5556/USD and simultaneously
sells $EUR,000,000 forward for delivery in three months at
EUR0.5545/USD. This foreign exchange transaction is equivalent to

Accepted Answer

buying two-months Euro forward at USD1.7999/EUR and selling three-months
Euro forward at USD1.8034/EUR

Answer

buying three-months Euro forward at USD1.7999/EUR and selling two-months
Euro forward at USD0.5545/EUR.

Answer

selling three-months Euro forward at USD0.5556 /EUR and buying
two-months Euro forward at USD1.8034/EUR.

Answer

selling two-months Euro forward at USD1.7999/EUR and buying three-months
Euro forward at USD1.8034/EUR.

Crowdly

A dealer buys EUR5,000,000 forward for Euro for delivery in, two months at EUR0...

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