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were turned into pesos using an internet exchange and taken out in the form
of cash.
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For example, a mortgage backed secured bond bundles mortgage, and then sells investors the right to receive the
payments that consumers make on those mortgage loans.
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The exchange rate at which the transaction is done is called the spot exchange rate.
The forward exchange rate (also referred to as forward rate or forward price) is the exchange rate
at which a bank agrees to exchange one currency for another at a future date when it
enters into a forward contract with an investor.
A foreign exchange spot transaction, also known as FX spot, is an agreement between two parties to buy
one currency against selling another currency at an agreed price for settlement on the spot date.
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