Guaranteed Exchange Rate Forward Contract

Exchanges
IPO Quote-Only Period
February 24, 2023
Islamic Finance
Mu’amala
February 24, 2023

A quanto forward whose underlying is a foreign stock and whereby the holder is allowed to isolate the effect of foreign currency on his return by having the right to close his foreign stock position at an exchange rate close to the rate that prevails today.

It is known for short as a GER forward contract

 

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