Suppose you go long in a foreign currency futures contract. Under what circumstances is your cumulative payoff

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Suppose you go long in a foreign currency futures contract. Under what circumstances is your cumulative payoff equal to that of buying the currency forward?

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International Financial Management

ISBN: 978-0132162760

2nd edition

Authors: Geert Bekaert, Robert J. Hodrick

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Question Posted: May 28, 2012 02:43 AM

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Suppose you go long in a foreign currency futures contract. Under what circumstances is your cumulative payoff

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The payoffs of futures contracts and forward contracts are only essentially the same because ...View the full answer

International Financial Management

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