A quanto forward whose payoff is directly converted into an amount denominated in a currency (e.g., a foreign currency) other than the currency denominating its price (the base currency). For example, a EUR/USD forward could have its price in euros while its payoff converts directly to a USD amount at the forward date.
Derivatives
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
Watch on Youtube
Comments