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What is equity roll-forward?
An equity roll forward allows an investor to maintain the investment position of a contract beyond its initial expiration. This occurs shortly after the initial contract ends.
What are the four main types of transactions from which transaction exposure arises?
1) Purchasing or selling on credit goods or services when prices are stated in foreign currencies, 2) Borrowing or lending funds when repayment is to be made in a foreign currency, 3) Being a party to an unperformed foreign exchange forward contract, and 4) Otherwise acquiring assets or incurring liabilities denominated in foreign currencies.
Loss Carry forward on a tax return?
If you are talking about a capital loss carry forward, you would enter the amount on Schedule D.
What is the difference between swap market and spot forward?
The swap market is one of the largest and most liquid global marketplaces, with many willing participants eager to take either side of a contract. According to the Bank for International Settlements, the notional amount outstanding in over-the-counter interest rate swaps was more than $341 trillion in 2019. In general, a spot rate refers to the current price or bond yield, while a forward rate refers to the price or yield for the same product or instrument at some point in the future. In commodities futures markets, a spot rate is the price for a commodity being traded immediately, or "on the spot". moneyplantresearch
What is the definition of a succeeding tax year?
It means the tax year that immediately follows. Individuals are calendar year filers, so here's an example: You have a tax credit on your 2010 tax return that you couldn't fully use because it was more than your tax liability, but it can by carried forward to the next succeeding tax year. Therefore you can claim the unused amount as a tax credit on your 2011 tax return. Tax before credits = $500 Nonrefundable business credit = $800 Tax = $0 $300 of the credit wasn't used & it's a credit you're allowed to carry forward, then you can use the remaining $300 of unused credit in the next year. There is usually a limit to how many years you can carry a credit forward before it is lost (unusable). If you have several years of business losses, you may end up with tax credits you never use.
What is forward rate in foreign exchange market?
Transaction in future date by forward contract(future delivery) to purchase/sell foreign exchange at prevailing rate.
Is the forward contract is legal in India?
if is done in national stock exchange it is legal
What strategy the Indian importer needs to follow to hedge the exchange risk?
it is better to go for forward contract
What is forward rate?
Forward exchange rate is the agreed upon exchange rate to be used in a forward trade.
Advantages of operating in forward market?
Forward market allows the dealers to concentrate on their core line of business because they don't bother themselves with the risk of currency exchange. There is no premium paid upfront on forward contract as compared to futures and options.
How do you use forward exchange in a sentence?
The track star used forward exchange in the relay.
What is the basic difference between a forward and future market?
A forward contract is a private and customizable contract that needs to be settled at the end of the agreement and is traded over the counter. A futures contract has standardized terms and is traded on an stock or commodity exchange, where prices are settled on a daily basis until the end of the contract.
Difference between Spot Exchange Rate and Exchange rate?
An exchange rate, which is also called the foreign-foreign exchange rate, is the rate that currency will be exchanged for another currency and may have a forward contract. The spot exchange rate is the current exchange rate today with immediate delivery and it is also called benchmark rates and outright rates.
How a forward premium or discount is computed?
forward exchange rate can be computed from spot exchange by adding or subtracting premium ir discount. also forward rate can be at forward premiun of discount when comapred to spot exchange rate.
When you choose future contract over forward contract?
When there isn't an active market for the forward contract. Generally, Futures contracts have a much more active open market than forward contracts and have alot more choice in terms of expiration months than forward contracts.
What are the differences between a forward contract a future contract and options?
1) forward contract is not standardised one..it is only traded in OTC(over the counter) where as future contract is a standardised one it is traded in Secondary Market
What is the difference between hedging and forward contracts?
A forward contract is an agreement between two parties to buy or sell an asset at a certain future time for a certain price agreed today. An option is an agreement between two parties for the option to buy or sell an asset at a certain future time for a certain price agreed today. The main difference is that a forward contract has to happen while an option may or may not happen depending on the value of the asset compared to the agreed price
