Hi,
If an investor is long a Forward contract on USD/GBP. What is happening at maturity? Is he buying GBP with USD, i.e. buying the base currency with the price currency?
Hi,
If an investor is long a Forward contract on USD/GBP. What is happening at maturity? Is he buying GBP with USD, i.e. buying the base currency with the price currency?
That’s how I would interpret it.
On the exam it will be clear whether you’re paying USD and receiving GBP or the other way round.
Thank you sir. Appreciate it.