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Is it correct to say that currency derivatives & interest rate derivatives which are similar both work in the same way such as:
(Currency Futures & Interest rate Futures – since they both are FUTURES so they do work in the same way for currency or interest rate hedging)
(Currency Options & Interest rate Options – since they both are OPTIONS so they do work in the same way for currency or interest rate hedging)?
The overall effect is the same in both cases.
However interest rate options are actually options on interest rate futures which makes calculations different. (Although, as I explain in my free lectures, calculations on interest rate futures and options are not examinable until Paper AFM.)