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Which is the strongest of the atomic bonds?
Fair Value Hedge
A type of hedge that aims to offset changes in the fair value of an asset or liability or an unrecognized firm commitment.
Forward Contract
An agreement to buy or sell an asset at a future date at a price agreed upon today, often used to hedge against price movements.
Spot Rates
The current market price at which a particular asset can be bought or sold for immediate delivery and payment.
Fair Value Hedge
A type of hedge that protects against changes in the fair value of an asset, liability, or an unrecognized firm commitment, often due to changes in interest rates or other market variables.
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