A Currency Forward Contract Passes Exchange Rate Risk from a Firm

question 13

Essay

A currency forward contract passes exchange rate risk from a firm to the bank that has written the forward contract.Why is the bank willing to bear this risk?

---

Definitions:

Ethnobiography

A combination of ethnography and biography, focusing on the detailed narrative study of a single person's life within their cultural and social context.

Solve

To find an answer to, explanation for, or means of effectively dealing with a problem or question.

Detailed

Characterized by the provision of comprehensive and thorough information or descriptions.