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Derivatives




Forward Extra


A structured forward contract which gives the holder the right, without the obligation, to buy or sell forward at maturity date on the condition that a preset trigger price is not ever broken through during a specified interval over its time to maturity. Otherwise, the holder would have to trade forward at a rate worse than that in an unconditional forward.

The forward extra is also known as a conditional forward.



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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