Not able to understand 2nd statement…
Rates to starting mai he decide hote hai to FRA mai to yeh expiration k time ki baat kyu kr rh h ??
for ex- March 2023 FRA ka rate Jan 2023 mai he decide hota hai na??
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
so fra simply hota kya h interest rates ke upar betting whereas forward contract or future contract jaha pr underline kuch v ho skta h
to fra mai suppose kro tm long ho mtlb upside betting tmko lg rha h interest rates future mai increase hoga toh tmne ek fra pr betting kiya @ 5% pr and contract 6 months ka tha and contract ka expiration mai interest rates 10% ho gya toh tm apna bet jit gye
kaise ?
kyuki ab tm 5% pr borrow karoghe whereas market mai 10% hai bt tm bet har jateh jb interest rates 5% se kam ho jata at the time of expiration suppose kro interest rates at expiration 2% ho gya bt tmhe borrow 5% pr karna hoga tm tm apna bet loose kar gye
so option b mai wahi bol rha h