<t>The main problem is that 'buyer' of this contract is the corporate and, while I agree that their purpose is to transfer price risk, it is purely for the purpose of the corporate knowing how many of their domestic currency they can expect to record in their accounting system. Their sole purpose is...

Hi, you might want to read my response in this thread http://www.wilmott.com/messageview.cfm? ... adid=83257

<t>These very simple contracts are not "traded" which is why the valuation is very simple.The need arises from an exporter/importer, who is expecting to be paid, or will pay, for goods needed at some time in the future, but that date is not certain. For instance, a construction company is engaged in...