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commodity futures contracts. The purchase of LIFFE by Euronext was completed in 2002. time period and using the same measure. 50 It is commonly applied to gold and silver, which are held for investment purposes. However, rate turns out to be 1.4 then the company will receive only $14 million for selling the pounds;
Sterling interest rate = 6% p.a. = 1% for two months. discount relative to the dollar for delivery in two months. In otherwords, it buys fewerUSdollars Contract period: A six-month period starting in six months