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International markets and foreign exchange operations - Savluk M.І.

11.1.5. Forward contracts with right date date

Depends on vid of mind. Forward contract. Two types of vouchers: fіksovanі that with the right date dating.

Fixed forward - a contract, on some dates the weekend is firmly specified by the bank and the client and cannot be changed (except for the currency, if the currency is due on a wedge). Such contracts are settled, if the client’s account is accurate, the payment date for the export of the imported land is exact.

Ale buvaє y so, what a client can’t know exactly the date of payment. As such, the bank will propose to its own customer service, the forward contract is called the right date, or the forward option.

For the sake of the right vibrator, or forward option (option forward), there is a contract, a certain right to buy a right to buy or sell foreign currency on any day between two dates, which are indicated in the contract. You can’t agree to the next contract: transaction no. Purchase / sale of currency є є ков є ти ти зд не не не не не не не не не.

For this reason, the forward exchange rate for the contract with the right date, the forward exchange rates for the ear of the contract period and the most for the bank (for the bank, I will buy the currency for the contract, then in the course of the contract) the rate is, the current sale is lower, when the bank buys the base currency, the contract will be lower, the price is higher for the sale).

Application. The client-importer is very willing to pay for the latest products, for the whole reason you will need to buy US dollars for euro, but you don’t know the exact date of the payment and the exact date of payment. A client having bent to the bank of the 2nd sickle with a shitty pay the payback contract. I have a completely successful forward contract with the right date.

On the 2nd sickle, the bank quotes the same forward rates.

EUR / USD 0.9530 - 0.9540

1m fwd 18 21

2m fwd 40 42.

The bank has a one-month forward payout for selling dolar at a rate of 0.9548, and for a two-month one - 0.9570. The forward contract with the right vibrator for sales by the US dollar bank will be placed at the rate of 0.9548. Termіn please indicate yak 1/2 (that’s more than one or two months at a time). Thus, the client has the right to accrue US dollars for Euro for the course of 0.9548 on any day between the 4th and 4th days.

If you pay only one month between the date of singing and the Mayday date, then please see the course vibrate from the spot rate and the forward rate for the end of the contract period.

Let’s turn to the front butt: for example, if you pay only a little bit of health by the stretch of a sickle, then the bank of vibiraє will have a spot rate of 0.9530 and a month-long forward rate of 0.9548. The contract will be placed behind the course of 0.9530.