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Foreign Exchange Exposure
The risk associated with changes in foreign exchange rates affecting the value of investments held in foreign currencies.
Derivatives
Financial instruments whose value is based on the value of another asset, such as futures, options, and swaps.
Transactions Exposure
The potential risk of value change in foreign currency transactions due to fluctuating exchange rates.
Forward Contract
A forward contract is a customized financial agreement between two parties to buy or sell an asset at a specified future date for a price agreed upon today.
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