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Re: Underlying Security of a Spot-FX Instrument
Jay Hurley / Bank of America Merrill Lynch <>
30 Oct 2011 10:57PM ET

I'll repharse you question as what is the underlying of fiat currency?
3. Government laws and regulations
In the case of EUR, created by the Maastricht treaty, it could also cease to exist.

Jay

> Hi Guys,
>
> This is a technical question to get your opinion on a theoretically simple subject:
>
> What is the "Underlying" Instrument of a Spot-FX contract, e.g. EUR/USD Spot ?
>
> 1. EUR Cash Currency
> 2. EUR Currency position with Spot Value Date
> 3. Other
>
>
> Then if 2., is the underlying of "EUR Value Date Spot" then 1. ?
> <==> Underlying (EUR/USD Spot) = EUR Value Date Spot
> and Underlying (EUR VD Spot) = EUR Cash
>
> Thanks for your opinion...
> Franck

Underlying Security of a Spot-FX Instrument
Franck MIKULECZ / BAXTER Financial Services Ltd.   30 Oct 2011 2:45PM ET

Re: Underlying Security of a Spot-FX Instrument
Jay Hurley / Bank of America Merrill Lynch   30 Oct 2011 10:57PM ET