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| Recovery Forward Contract |
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Recovery Forward Contract
A double-barrier (out) option with a rebate provision embedded in a currency forward. With this contract an end user can sell a non-base currency forward at a premium to the market rate if the rate does not rise above the contract rate or drop below a lower barrier during the term of the contract. The dealer will rebate part of the contract's premium if the lower barrier is breached.
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Glossary *
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