Asked by elizabeth

what are the factors that affect the decision of utilizing spot versus forward exchange rate
Answered by Ms. Sue
By using the spot exchange rate the buyer knows almost exactly what rate s/he'll be getting. The forward exchange rate is riskier because we don't know what this rate will be in the future.

Check this site.

http://en.allexperts.com/q/Economics-2301/spot-forward-exchange-rates.htm
There are no AI answers yet. The ability to request AI answers is coming soon!