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Fixed-price swaps aren't solutions exclusive to paper producers; paper buyers can initiate these types of agreements to protect them from market pressures, as well.
There are no fees or premiums assessed in a financial swap, and only money—never actual paper—changes hands between the two parties. Swaps convert a floating price to a fixed price, guaranteeing stability. After a period of time determined at the agreement's negotiation (typically between one and 10 years), the swap expires.
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