This preview has intentionally blurred sections. Sign up to view the full version.
Unformatted text preview: -Spot exchange rate- rate at which a foreign exchange dealer converts one currency into another currency on a particular day Price of a currency in a given day Changes continually depending on the supply and demand for that currency and other currencies-Forward exchange rate: the rate at which 2 parties agree to convert one currency into another on a particular day in the future 650k EUR= 963.95 USD Later $1M= 1.2511 M AUD .650K EUR * 1.483= 963.95 K USD [$36.05K left]...
View Full Document
- Spring '13
- Exchange Rate, USD