Showing papers on "Spot contract published in 1975"
TL;DR: In this article, the authors explored the behavior of the foreign exchange markets for the floating rate period since 1973 and the immediately preceding fixed rate period and showed that the cost of forward cover and the gains from speculation in the forward market for the major currencies has not changed significantly between the two periods and, in fact, the forward rate has been an unbiased predictor of the future spot rate.
Abstract: This paper explores the behavior of the foreign exchange markets for the floating rate period since 1973 and the immediately preceding fixed rate period. The author presents evidence showing that the cost of forward cover and the gains from speculation in the forward market for the major currencies has not changed significantly between the two periods and, in fact, the forward rate has been an unbiased predictor of the future spot rate for the floating rate period.
24 citations
TL;DR: In this paper, a model of the spot market for foreign exchange is used to study the behavior of exchange rates, official reserves, and speculators' profits when exchange rates are flexible, pegged, and regulated by gliding-parity rules based on averages of spot rates, levels and changes in reserves.
23 citations