question archive Three months ago, we took a position in a six-month-forward contract requiring us to deliver €5,400 in exchange for SGD10,000
Three months ago, we took a position in a six-month-forward contract requiring us to deliver €5,400 in exchange for SGD10,000
Subject:FinancePrice: Bought3
Three months ago, we took a position in a six-month-forward contract requiring us to deliver €5,400 in exchange for SGD10,000. Our decision was a bet on some political events which in our view would lead to a weaker Euro. Today, the spot exchange rate is €0.57/SGD1, and the risk-free rates of interest on the Euro and the Singapore dollar are...
