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spot price
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spot price

Price for spot goods, that is goods to be delivered immediately, as opposed to futures, which are to be delivered at a fixed time in the future. The spot price is normally higher than the forward price.



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Next, using continuously recorded observations for the deutschemark/dollar and yen/dollar spot exchange rates covering more than a decade, they find that forecasts from a simple long-memory Gaussian vector autoregression for the logarithmic daily realized volatilities perform admirably compared to popular daily ARCH and related models.
Option contracts are more expensive, but allow firms to let the option lapse and therefore benefit from spot exchange rates if these are more favourable.
That notion was extended to hedges of foreign-currency instruments remeasured at current spot exchange rates with the resulting gain or loss reported in earnings.
 
 
 
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