Originally posted by Sagacious Dolphin
Give an example then.
Well... duh. They do, you know
Give an example then.
In certain indistries. In others, long-term contracts that don't hold all kinds of adjustment clauses - including, of course, currency clauses - are almost unheard-of
If you agree a contract at a given price in a given currency you will not change that price due to currency fluctuation. If you are the person gaining why would you agree to change the contract price?
I really don't think so. I'd be interested to tell us why you believe that. I'm referring to quite ordinary business practices
Not ordinary.
It means nobody sells teleco systems due for delivery 2005 for a fixed price. The reason you never hear the exact amount given as deals are presented isn't that they don't want to brag - beacuse they do! - but that any number presented at this point is a ballpark figure anyway, due to be adjusted by any of a huge number of circumstances that are all regulated in the deal. There's nothing mysterious or fishy about all this, and it's normal business practice even with certain long-term service contracts these days
The relevance of contract pricing to FX exposure is?
Comment