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If,under a fixed exchange rate system,the dollar price of a Mexican peso is above its equilibrium level,then the
Derivative Instrument
A financial security whose value is dependent upon or derived from an underlying asset or group of assets.
Options Contract
A financial derivative that gives the buyer the right, but not the obligation, to buy or sell an asset at a set price on or before a given date.
Future Contract
A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future.
Swap Contract
A financial derivative agreement between parties to exchange cash flows or other financial instruments over a specified time period.
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