Tag Archives: S&P 500 Futures Quanto USD-BRL Currency Adjusted Index
The S&P 500 Futures Quanto USD-BRL Currency Adjusted Index: Measuring Currency Exchange Risk and Interest Rates in Brazil
In order for a Brazilian market participant to track the S&P 500® through equity index futures, they must first convert Brazilian reais to U.S. dollars and then use U.S. dollars to enter a position in equity futures. This transaction involves two sources of risk: equity risk and currency exchange risk. To address the currency exchange risk…
- Categories Equities
- Other Tags
- Categories
- Equities
- Other Tags
