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real currency has the same issue as well. this is dealt with currency futures and forwards.
by joshu 13y ago
real currency has the same issue as well.
this is dealt with currency futures and forwards.
- minikites 13y agoYou honestly think the US Dollar will change in value by 700% in a few months?
- joshu 13y agoTone down the lack of clue. Imagine you are buying goods denominated in euros and it takes two weeks for them to be delivered. You don't want to incur any P&L due to the change in exchange rate between now and delivery. The exchange rate changes all the time. You would use a currency forward to hedge out that change.