Eg if futures price is 46 then what will be the spot price? How it is calculated and where it is traded? I know it is traded on NSE %26amp; MCX. But what about spot price ? When we exchange money at (Western Union) or any Bank is the rate different from those traded at exchange? Or spot price and future price are same. Thanks|||The principle of continuous compounding applies to forward prices. Hence given the forward price,one needs to discount the continuous compounding rate to derive the spot rate.If the prevailing interest rate is 10%, then the continuous compounding rate for 3 months is e^(0.25x0.1).
Normally independent FOREX brokers or bankers need to use the RBI's reference rate + transaction fees(=commissions) to quote the exchange rate on a particular day. Hope this helps.
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