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Introduction to Forward Contracts Forwards contracts represent customizable agreements between two parties to buy or sell an asset at a predetermined price on a future date. With their adaptability towards commodities, amounts, and delivery dates, forward contracts stand as a valuable tool for hedging purposes. However, it is essential to
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Introduction to Covered Interest Rate Parity (CIP) Covered interest rate parity, a crucial concept in international finance, is a condition that exists when the relationship between interest rates and spot and forward currency values of two countries remains balanced. This no-arbitrage situation is based on the assumption that there are
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