Question: 1) critically differentiate between forward and future contracts. (6 marks) 2 a ltd intends buy 10,000 Rands in three months time . the following information

1) critically differentiate between forward and future contracts. (6 marks)

2 a ltd intends buy 10,000 Rands in three months time . the following information is available.

sport rate 0.67,the forward rate in three months is 0.7, how can a ltd hedge against foreign exchange fluctuation clearly explaining the implication to ltd should the sport rate in three months time be more or less than the forward rate? (9 marks)

3) differentiate between the following types of markets.

a)capital and money markets

b) primary and secondary markets

c) bond and equity markets

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