BFM Numericals Solved · Part 2: Forex

Chapter 5: Merchant rates and forward contracts

The rates a bank quotes its own customers, built from the interbank market, and FEDAI’s rules for contracts that change.

Buyers of the e-book, or of the print copy, which includes it, read the whole chapter. Everyone can read the free sample, pages 1 to 24 of the e-book.

In this chapter

• 5.1Four merchant ratesp. 89
• 5.2Export bills and the transit periodp. 91
• 5.3The bank’s cover and marginp. 93
• 5.4Forward merchant ratesp. 94
• 5.5Option forward contractsp. 95
• Four 30-second routesp. 96
• 5.6Cancellationp. 97
• 5.7Extensionp. 99
• 5.8Early deliveryp. 100
• 5.9Overdue contractsp. 101
• 5.10Crystallisation of export billsp. 102
• Which rule? A map of the chapterp. 103
• Exam traps and conventionsp. 104
• Practice: 30 questions in three roundsp. 105
• Answers, with every wrong option explainedp. 108
• Make it stickp. 111
• Chapter 5 on one pagep. 112

Corrections and updates

None for this chapter so far. Every correction to the book, and any rule that changes after its date, is listed on the errata page.