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Quanto

• Is an option feature which removes foreign currency risk from a derivative transaction from the investor's viewpoint. It is built into the structure. Quantos are also known as Guaranteed Exchange Rate Contracts. The purpose is hedge or lock in a known currency exchange rate.

 
 Embedded terms in definition
 Currency risk
Currency
Derivative
Exchange rate
Exchange
Foreign currency
Foreign
Hedge
Option
Quantos
Risk
 
 Related Terms
 Quanto swap

<< Quantitative analysis Quanto swap >>

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