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Why should i use ppp instead of irp

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Reference no: EM133076607

Knowing that the IRP allows you to "hedge" the fluctuations risk on the currency level because you can get in a contract that locks that level today it is supperior to the PPP, that doesn't lock any level (it is the expectation, but canmot be traded today, you cannot lock that expectation to limit the risk of currency fluctuation).

Why should I use PPP instead of IRP? can I always use IRP for every currency?

Reference no: EM133076607

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