Question: Take sometime and explain the two question in a form that I can understand the concept. 1. In a few paragraphs take a few minutes

Take sometime and explain the two question in a form that I can understand the concept.

1. In a few paragraphs take a few minutes and explain when you convert 10 mil Euros into USD next month, are you buying or selling Euros? To lock the future exchange rate in this case, should you long or short Euro FX futures today?

2. In a few paragraphs explain what is the contract size (aka. contract unit) of 1 Euro FX futures contract? Also, Is the British Pound futures contract size the same as Euro FX futures? How many Euro FX futures contracts do you need to long/short today?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!