Suppose that the current price of USD/TL rate is 7.18. AL Borsa istanbul there is USD futures contract with maturity June 30th 2021. Suppose the discount rate from today to june is 0.95. Suppose that the contract is traded at fair price. Each contract is for 1000 USD and needs 400 TL initial margin and 300 TL maintenance margin in the account. Suppose expecting USD rate will rise you bought 5 long contracts. (Answer the following to 2 decimal digits.) What is the initial price of the future contract - JusoTRY. What is the initial amount of margin account needed- TL TL(wite negative number for If the USD rate falls to 7.14 next month and the discount factor becomes 0.96 what is your profit/loss:

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Exchange Rate Risk

It is the possibility that the value of a currency will fluctuate in the future. In the wake of globalization, business establishments have increasingly ventured into international markets. The volume of international trade has prospered excellently in the near past and is expected to be more affluent in the future. The use of exchange-traded derivative financial instruments has been multi-folded to provide for the requirements of various MNCs and offshore potential investors. Most banks and financial institutions have helped integrate the global economies. Our Government has introduced some bold and extreme measures to fulfil the purpose behind the fiscal, industrial, and monetary policies. The enactment of GST is a huge step towards streamlining the taxation system of the country. Owing to Covid-19, this aspect of corporate risk management has become critical.