Define spot and forward exchange rates. If a trader expects to buy a foreign currency in one

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Define spot and forward exchange rates. If a trader expects to buy a foreign currency in one month, can you explain why the trader might prefer to enter into a forward contract today rather than simply wait a month and transact at the spot rate prevailing then?
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Introduction to Corporate Finance

ISBN: 978-0324657937

2nd edition

Authors: Scott B. Smart, William L Megginson

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