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Perfect Hedge
A hedging strategy that completely eliminates the risk associated with a particular position or portfolio.
Interest Rates
The fee, shown as a percentage of the principal amount, that a lender requires from a borrower for the utilization of resources.
Prices Rise
An economic phenomenon where the general level of prices for goods and services increases over time.
Futures Contract
An arrangement, enforceable by law, where individuals agree to trade a specified commodity or financial instrument at a previously established price, to be fulfilled at a specified time ahead.
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