Meaning Currency Call Option is a contract between two parties under which option buyer gets the right to buy the underlying currency within a specified period. For buying the ‘right’, call option buyer will pay an amount to call option…
Meaning Currency Put Option is a contract between two parties under which option buyer gets the right to sell the underlying currency at pre-determined price (Strike Price) within a specified period. For buying the right put option buyer will pay…
Meaning of Currency Option Currency Option is a contract between two parties that provides the buyer the right to buy or sell specified quantity of underlying currency on or before a specific date at a specified price. In this derivative…
Extension or Rollover of Forward Contract Some times may be due to some unforeseen reasons, payment or receipt of foreign currency is required to be deferred. In such cases banks may be requested to extend the date of forward contract.…
Concept of Cancellation of Forward Contract If due to some uncertain events or reasons, if forward contract can not be executed then it is cancelled. There are so many events that may cause cancellation of forward contract and one of…
Meaning of Early Delivery You know very well that currency forward contracts are entered to exchange foreign currency on a specified date in future. But it might happen that in future due to some circumstance’s customer may approach the bank…
Meaning of Currency Forward Contract Currency Forward Contract is an instrument that can be used for hedging the exposure in foreign currencies. Under this contract customer enter into a contract with the bank to fix the exchange rate of a…
Overview It is well-accepted that investment in infrastructure is necessary for growth. Power shortages lead to dependence on expensive captive power, which in turn impels high costs and lack of competitiveness for the economy. Inadequate transport infrastructure leads to bottlenecks…
Overview Hello friends welcome to Finance Cracker. Saving Account is an account where we keep our hard-earned money that is not required immediately. The world is changing very fast. Banks are trying to adopt best technology to make their customer…
Meaning of International Arbitrage International Arbitrage is the process of selling and buying foreign securities and ADRs simultaneously to take advantage of imperfect pricing in different international markets. Arbitrage is the process of simultaneously selling and buying the same assets…
