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According to the Text,which of the Following Statements Is True

question 15

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According to the text,which of the following statements is true?


Definitions:

Forward Contract

A financial derivative that represents a customized contract between two parties to buy or sell an asset at a specified price on a future date, which is not traded on an exchange.

Cash Flow Hedge

A financial strategy to mitigate the risk of future cash flow fluctuations, typically related to variable interest rates, foreign exchange rates, or commodity prices.

India Rupee

The India Rupee (INR) is the official currency of India, used as the medium of exchange within the country.

Fair Value Hedge

A hedging strategy used to protect against changes in the fair value of assets or liabilities.

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