Examlex
When a parent company tries to convince a subsidiary to hedge its transaction exposure, this is called leading.
Forward Contract
A financial derivative contract between two parties to buy or sell an asset at a specified future date for a price agreed upon today.
Canadian Dollars
The currency of Canada, represented by the symbol CAD or C$.
Foreign Exchange Risk
The possibility of losing value due to changes in currency exchange rates.
Spot Rate
The current market price at which a particular asset, such as foreign currency, can be bought or sold for immediate delivery.
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