Viner Co. is a U.S.-based MNC that will receive 200,000 Swiss francs (SF) in six months. It could obtain a forward contract t o sell SF200,000 in six months. The six-month forward rate is $.71, the same rate as currency futures contracts on Swiss fr ancs. If Viner sells Swiss francs six months forward, it can est imate the amount of dollars to be received in 6 months as fo llows: Cash inflow in $ 74 Receivables Forward rate 14 SF20 0,000 $.71 14 $142,000 1 The same process would apply iff utures contracts were used instead of forward contracts. The futures rate is normally close to the forward rate, so the mai n difference is that a futures contracts would be standardize d and sold on an exchange whereas a forward contract woul d be negotiated between the MNC and a commercial bank. Viner Co. is a U.S.-based MNC that will receive 200,000 Swiss francs (SF) in six months. It could obtain a forward contract t o sell SF200,000 in six months. The six-month forward rate is $.71, the same rate as currency futures contracts on Swiss fr ancs. If Viner sells Swiss francs six months forward, it can est imate the amount of dollars to be received in 6 months as fo llows: Cash inflow in $ 74 Receivables Forward rate 14 SF20 0,000 $.71 14 $142,000 1 The same process would apply iff utures contracts were used instead of forward contracts. The futures rate is normally close to the forward rate, so the mai n difference is that a futures contracts would be standardize d and sold on an exchange whereas a forward contract woul d be negotiated between the MNC and a commercial bank