We haven availed a foreign currency loan in USD, maturing at the end of 6th month. How to protect the exchange rate difference, by hedging? What is to be done? buy or sell the futures? pl. explain by illustration. I am new to this.
What exactly happens in forward booking the transaction? i.e. at the time of availing and paying back the loan what is the importance of the spot and future price of USD v/s. INR pl. explain. What is cost / loss that may have to be incurred? can profit may be enjoyed?
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