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Boosted Forward


A forward contract which allows the holder, virtually for no premium, to have a better forward rate than the pre-agreed rate in case the spot price trades within a preset range. However, if the spot price breaks outside that range, the forward rate will be worse than the pre-agreed rate. If an investor expects the spot price would be range-bound, this strategy could be an profitable course to take.



ABC
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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