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Knock-In Cancellation Forward


A structured forward transaction which is automatically terminated if a prespecified cancellation trigger is broken through by the spot price over the tenure of the forward. Furthermore, if the spot price has never breached a preset knock-in threshold over the life of the forward, the position would raise no downside liabilities on the part of its holder. The knock-in cancellation forward is synthetically a combination of a cancellation forward contract and a knock-in forward contract.



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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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