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Trading Terms

Optional Term Contracts

A key concept in finance is the forward exchange contract, which typically includes a 15 to 30 day option period. This contract allows parties to lock in a future exchange rate for a specified amount of currency. This helps to mitigate the risk of currency fluctuations and allows for better planning in international transactions. As a knowledgeable professor, I encourage you to delve deeper into the world of finance and explore the intricacies of forward exchange contracts.
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