NakedPuts00

This was a BAD question in my opinion.
Maple is a CAD company investing in EUR. (ASSUMED)
They are really Long EUR on the business, not on the offsetting FRA.
In my opinion, they are really selling EUR and Buy CAD on the FRA. (I can be wrong)

Therefore, if I (CAD investor) invested in EUR securities and locked in a a Forward rate of .163 CAD/EUR and impliedForward (market rate) is 1.628 CAD/EUR, then I got a better deal than the market.


This was the only way that I could make any sense of this before going crazy.



Edited 1 time(s). Last edit at Wednesday, June 2, 2010 at 10:22AM by sh34.