Question: 5.1 How do currency forward and futures contracts differ with respect to maturity, settlement, and the size and timing of cash flows? 5.2 What is

5.1 How do currency forward and futures contracts differ with respect to maturity, settlement, and the size and timing of cash flows?

5.2 What is the primary role of the exchange clearinghouse?

5.3 Draw and explain the payoff profile associated with a currency futures contract.

5.4 What is a delta hedge? A cross hedge? A delta-cross hedge?

5.5 What is the basis? What is basis risk?

5.6 How do you measure the quality of a futures hedge?

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