Just want to check my understanding:
For a currency forward, if E(S) FP, then the forward market for domestic currency is in contangio, right? Assume E(S) and FP denominated in DC/FC.
Thanks…作者: RealEstate_CFA 时间: 2013-4-7 03:10
Thanks. You are right about the futures vs forward reference. However, I have seen a reference to contango and backwardation with respect to currency futures e.g. CFAI EOC question 14 Reading 59.
My original question should read:
Just want to check my understanding:
For a currency future, if E(S) FP, then the futre market for domestic currency is in contango, right? Assume E(S) and FP denominated in DC/FC.
Thanks…作者: Swanand 时间: 2013-4-7 03:13
thanks. this makes.作者: lunarfollies 时间: 2013-4-7 03:14
