Specified value for currency at specified exchange rate

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Question

The arrangement will be to swap a specified value for a currency at a specified exchange rate at some specified date for the future between a company and a financial institution. In other terms, it would be possible to lock a fixed interest rate to guarantee the price in the future for Mesa. The futures contracts are covered, but they are limited to a certain tradable sum or volume. If we were to secure the monetary option, Mesa would have the right within a certain time to buy a certain currency at a given price. Mesa could keep the exchange rate at a top price at the same price for a potential return. As it is well understood that the exchange rate price and inflation will decrease both of these options in the future, Mesa will be able to capitalize on the present rate in the future market.

Reference no: EM133936028

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