Examlex
Match each item with the correct statement below.
-_____ involves buyer seller exchanges characterized by limited communications and little or no ongoing relationship between the parties.
Speculative Forward Contract
A financial derivative used to speculate on the future price of an asset, involving an agreement to buy or sell the asset at a future date for a price determined today.
Fair Value Hedge
A risk management technique that uses financial instruments to mitigate the risk associated with changes in the fair value of an asset or liability.
Firm Commitment
An agreement between a buyer and an underwriter in which the underwriter guarantees the sale of a certain amount of securities.
Cash Flow Hedge
A hedging strategy used to manage risk associated with variability in cash flows, typically related to interest rates or currency exchange rates.
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