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An investor would like to use a derivatives contract to hedge foreign exchange risk. They do not want to worry about counterparty risk and hence

An investor would like to use a derivatives contract to hedge foreign exchange risk. They do not want to worry about counterparty risk and hence want a contract where profits and losses are settled daily. Which of the following best fits this description.

  • A. Futures contract
  • B. Forward contract
  • C. Swap
  • D. All of the above

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