Communiquez avec les autres et partagez vos connaissances professionnelles

Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.

Suivre

Is the price of future is the best estimate of the exchange rate?

user-image
Question ajoutée par Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town
Date de publication: 2014/03/16
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
par VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

It Need not be the best.

A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future. These types of contracts fall into the category of derivatives. Such instruments  are priced according to the movement of the underlying asset (stock, physical commodity, index, etc.). The aforementioned category is named "derivatives" because the value of these instruments are derived from another asset class and thus need not reflect the real value for it for the future estimated price.

Divyesh Patel
par Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

No. The price of financial futures comes from arbitrage and it has nothing to do with expectations.

Salah Othman Yousef Alshambaati
par Salah Othman Yousef Alshambaati , مدير ادارة الحسابات , شركة انفال الجديدة للتجارة والمقاولات

Agreed with the answer:

Divyesh Patel

Mohammed Salim Allana
par Mohammed Salim Allana , Compliance and Assurance Manager , United Arab Bank

Agreed with Venkitaraman and Divyesh. The structure of the derivative future are generally based on the best assumption made on the past performance of a specific currency or commodity, which is not real.

Alex Al Yazouri
par Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

No, has nothing to do with expectations of exchange rate.

SHINU SAM JOY
par SHINU SAM JOY , Accountant , Neat and Net LLC

Agree with Mr. venkitaraman

RAMAN NAMPOOTHIRI
par RAMAN NAMPOOTHIRI , Dubai, UAE as Audit Manager , Paul & Hassan Chartered Accountants

Since demand and supply position of commodities will affect the actual price, theoretical estimated price may not be actual price.

Faraz Sultan
par Faraz Sultan , head of regional operations , BMSA GLOBAL

No.

Khurrum Iqbal
par Khurrum Iqbal , Accountant , Akun Logistic Services

no

FITAH MOHAMED
par FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

AGREE WITH MR VENKITARAMAN & MR DIVYESH ANSWERS 

Menerva Melad
par Menerva Melad , Account Executive, Key Accounts , Graphic Home Company

not all time

price of future is the best estimate of the exchange rate

More Questions Like This