KNOWLEDGE CHECK EUR 4,717 more ZAR 4,717 fewer Imagine you are a Dutch diamond dealer who sources diamonds from South Africa. It is March 2016. A new mine is being dug in South Africa and you have agreed with the miner to buy one million South African rands' worth of diamonds a year from today. Therefore, you will need one million rands in cash in one year's time. The miner wants you to demonstrate your commitment by either giving him a million rands now or proving that you have an FX forward contract for the full amount. Currently, the exchange rate is 17.1 rands to the euro. You check the forward rates on offer on the Bloomberg FRD function. You have two options. Exchange euros today at today's exchange rate to pay him one million rands now, or lock in a forward agreement to convert euros to one million rands in one year's time and share the forward agreement with him. If you were to do the forward instead of exchanging euros for rands today, approximately how much more or less would you end up with in a year? EUR 4,717 fewer ZAR 4,717 more Click to open/close chart « PREV SUB No Navt Module KNOWLEDGE CHECK < > EUR-ZAR X-RATE Curncy FRD . Related Functions Menu Message EUR ZAR EUR D Actions Settings 3 Multi-Currency View FX Forward Calculator Do Forwards 10 Cross-Rates Calculator 13 Par Forwards D Predelivery/HR Currencies EUR BAR via Pricing Date 03/21/16 Auto Refresh Spot Source BGNL Trading Mode Direct Input Fwd Source CHPL 33 ONE Show True Decimal 20 Forward Curve 22 Broken Dates Dates Points Bid/ Ask Forwards Bid/Ask Days Dates Points Bid/Ask Forwards Bid/Ask ON 03/22/16 137.00 140.40 17.086860 17.109120 mm/dd/yy TN 03/23/16 32.80 41.00 17.100900 17.122820 SP 03/23/16 17.1050 17.1261 17.1050 17.1261 SN 03/24/16 38.16 38.76 17.108816 17.129976 1W 03/30/16 267.10 271.30 17.131710 17.153230 2W 04/06/16 528.38 $59.02 17.157838 17.182002 3W 04/13/16 1789.67 846.75 17.183967 17.210775 IM 04/25/16 1237.58 1339.99 17.228758 17.260099 2M 05/23/16 2275.85 2466.91 17.332585 17372791 23 Forward Forwards IMI 06/15/16 3310.82 3237.87 Forwards Bid/Ask Dates 17.428787 17.457182 Points Bid/Ask 3M 06/23/16 3572.48 3604.36 17.228758 17.260099 IH 17.462248 17.486536 04/25/16 4M 07/25/16 1861.44 4902.61 17.591144 17.616361 3M 06/23/16 2232.49 2366.78 17.452007 17.496771 5M 05/23/16 6029.56 6079.16 17,707956 17.734016 IM2 09/21/16 7197.68 7255.70 17.824768 17.851670 mm/dd/yy 6H 09/23/16 7278.24 7336.84 17.832824 17.859784 mm/dd/y IMG 12/21/16 11006.62 11149.13 18.205662 18.241013 9M 12/23/16 11090.40 11234.80 18.214040' 18.249580 IM4 03/15/17 14779.86 14921.17 18.582986 18.618217 17 03/23/17 15139.81 15280.82 18618981 18.654182. 1005 40 Legend • Represents Holiday ZAR
