What is future spot rate
Spot Rate: The price quoted for immediate settlement on a commodity, a security or a currency. The spot rate , also called “spot price,” is based on the value of an asset at the moment of the The spot rate is a price quoted for immediate settlement on a a currency. The spot rate, or “spot price,” is based on the value at the moment of the quote. This value depends on factors such as current market value and expected future market value. Forward rates are calculated from the spot rate and are adjusted for the cost of carry to determine the future interest rate that equates the total return of a longer-term investment with a A forward rate is what the rate ought to be (based on interest rate differentials, SWAP points etc) some time in the future. A Future spot rate is what the rate actually is in the future. I guess an example would be relevant here: Suppose th Spot Exchange Rate: A spot exchange rate is the price to exchange one currency for another for immediate delivery. The spot rates represent the prices buyers pay in one currency to purchase a The future spot rate is the rate that you'd pay to buy something at a particular point in the future, while the forward rate is the rate you'd pay today to buy something to be received in the future. In the first case, you hold on to cash, and wait to buy the thing; in the latter case, you pay for the thing now, and you wait and receive it later.
The price of an FX futures product is based on the currency pair's spot rate and a short-term interest differential. The pricing formula is similar to how FX forwards
28 Jan 2013 Even though the forward-spot relationship in currency markets is very revisions in the forward rate forecasts of the future spot exchange rate it is well-known that the current spot exchange rate is a better forecaster of the future spot exchange rate than the forward rate. We show that this property always price volatility. I also explain the role and behavior of commodity futures markets, and the relationship between spot prices, futures prices, and inventoql behavior Spot Rate: The price quoted for immediate settlement on a commodity, a security or a currency. The spot rate , also called “spot price,” is based on the value of an asset at the moment of the The spot rate is a price quoted for immediate settlement on a a currency. The spot rate, or “spot price,” is based on the value at the moment of the quote. This value depends on factors such as current market value and expected future market value. Forward rates are calculated from the spot rate and are adjusted for the cost of carry to determine the future interest rate that equates the total return of a longer-term investment with a
What it is: The spot price is the current market price at which an asset is bought or sold for immediate payment and delivery. It is differentiated from the forward price or the futures price, which are prices at which an asset can be bought or sold for delivery in the future.
Exchange rate that prevails in a forward contract for purchase or sale of foreign exchange is called Forward Rate. Thus, forward rate is the rate at which a future forecasting ability of futures prices during different market conditions, defined by the futures curve shape (backwardation and contango) and spot price trends
An Outright Forward is a binding obligation for a physical exchange of funds at a future date at an agreed on rate. There is no payment upfront. Non-Deliverable
The spot price is the current market price of a securityPublic SecuritiesPublic securities, or marketable securities, are investments that are openly or easily traded in a market. These securities are either equity or debt-based. An equity security is an investment based on the equity of a company. Spot rate for two years, S 1 = 7.5% Spot rate for one year, S 2 = 6.5% No. years for 2 nd bonds, n 1 = 2 years No. years for 1 st bonds, n 2 = 1 year As per above-given data, we will calculate a one-year rate from now of company POR ltd. Therefore, calculation of one year forward rate one year Spot–future parity (or spot-futures parity) is a parity condition whereby, if an asset can be purchased today and held until the exercise of a futures contract, the value of the future should equal the current spot price adjusted for the cost of money, dividends, "convenience yield" and any carrying costs (such as storage). Expected Spot Rate The exchange rate between two currencies that is anticipated to prevail in the spot market on a given future date. It differs from the current spot rate primarily by the extent to which inflation expectations in the two currencies differ.
17 Sep 2015 A Future spot rate is what the rate actually is in the future. I guess an example would be relevant here: Suppose the current spot rate for the EURUSD is 1.1137.
In addition to comment given by @dismalscience, here you may find partial answer (hope I got everything right below). Since many similar terms refer to
Spot Rate: The price quoted for immediate settlement on a commodity, a security or a currency. The spot rate , also called “spot price,” is based on the value of an asset at the moment of the The spot rate is a price quoted for immediate settlement on a a currency. The spot rate, or “spot price,” is based on the value at the moment of the quote. This value depends on factors such as current market value and expected future market value. Forward rates are calculated from the spot rate and are adjusted for the cost of carry to determine the future interest rate that equates the total return of a longer-term investment with a A forward rate is what the rate ought to be (based on interest rate differentials, SWAP points etc) some time in the future. A Future spot rate is what the rate actually is in the future. I guess an example would be relevant here: Suppose th