contingent

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Description Contingent contracts usually occur when both negotiating parties fail to reach an agreement. The contract is characterized as “contingent” because the terms are not final and are based on certain events or conditions occurring. Contingent Contracts 1 Contingent Contracts 2...

. Contingent Exposure The principle focus is on the items which will have the impact on the cash flows of the firm and whose values are not contractually fixed in foreign currency terms. Contingent exposure has a much shorter time horizon. Typical situation giving rises to such exposures are...