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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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