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When a currency trades at a discount in the forward market
Binding Contract
A legal agreement between parties that is enforceable by law, where each party has specific obligations.
Agreement
A mutual understanding between two or more parties about their respective rights and duties regarding past or future performances.
Offer
An offer is a proposal presented by one party to another with the intention of entering into a binding agreement, subject to acceptance by the receiving party.
Acceptance
In contract law, the expression of assent to the terms of an offer in such a manner that binds both the offeror and the offeree to the terms of the contract.
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