Hello,
Im new to this.
I am trying to analyse a contract based on the EURGBP spot rate.
The contract is based on the average EURGBP spot rate for every day in January (which is used againt GBP 50M to get the EUR equivalent, but then it is forward settled to settle at the end of March.
I am trying to get my head around this.
I can use the forward points on Bloomberg to get what the EURGBP spot rates might be throughout January to work out the EUR amount against the GBP 50M, but then what do I do. The contract is for the future delivery of these two amounts so do I just use the forward forward rates.
It is at this point that I start to go cross eyed!!!
Any help
Phil
Im new to this.
I am trying to analyse a contract based on the EURGBP spot rate.
The contract is based on the average EURGBP spot rate for every day in January (which is used againt GBP 50M to get the EUR equivalent, but then it is forward settled to settle at the end of March.
I am trying to get my head around this.
I can use the forward points on Bloomberg to get what the EURGBP spot rates might be throughout January to work out the EUR amount against the GBP 50M, but then what do I do. The contract is for the future delivery of these two amounts so do I just use the forward forward rates.
It is at this point that I start to go cross eyed!!!
Any help
Phil
