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Derivatives >> Swap
 
   For those companies that need to reduce their exposure under a specific index, currency or interest rate Banco Votorantim offers a hedge instrument for exchange-rate, interest-rate or index fluctuation through exchange of indexes derivative instrument. The cash flows calculated based on a notional principal amount and the payment is net settled at maturity date.

   The main benefit is mitigate exposures of asset/liability, avoiding sharp fluctuations at balance sheet and company statements.

 
See also:
 
Non Deriverable Forward
 
Option
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