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Forums › CIMA Forums › Forward Contract vs MMH
A co. may use a money market hedge instead of a forward contract because the timing of payable does not permit the use of a forward contract? Is this true?
My thinking is that a forward contact is tailored and can be arranged for any given future date in the ST and hence the statement is false.
Forward contracts are always OTC and can be individually arranged to precise specifications. So, you are correct, the statement is false.
