Difference Between Foreign Currency ‘Forward Contracts’ and ‘Futures Contracts’

Question

Explain the differences between foreign currency ‘forward contracts’ and foreign currency ‘futures contracts’. Why would an MNC choose one type of an instrument over the other?

Summary

The question belongs to Finance and the question explains the differences between foreign currency ‘forward contracts’ and foreign currency ‘futures contracts’. And explains why MNCs generally chose one type of instrument over the other.

Total Word Count 539


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