What is the difference between a spot and forward fx rate, Ask an Expert

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What is the difference between a spot and forward FX rate? Suppose that the spot US Dollar price of the Canadian Dollar was $0.90 and the 180 day forward rate is $0.9180. What does the forward price relative to the spot price tell us about the predicted direction of the Canadian dollar? Is that forward rate an accurate predictor of the spot rate in 180 days? What are the spot and forward Canadian Dollar prices of the US Dollar? Please describe the two types of participants in the forward FX market.

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Financial Management, Finance

Category:- Financial Management
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