FinancialMarketsChap31

FinancialMarketsChap31 - Finance Notes Ch. 31 Covered...

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Finance Notes Ch. 31 Covered interest arbitrage- The arbitrage process that forces interest rate parity to hold Cross rate- The exchange rate between two countries other than the United States Currency Coupon Swap- A currency swap in which one of the parties pays a fixed rate and the counterparty a floating rate Currency Swap- An agreement by which two counterparties agree to swap interest and principal in two different currencies Direct Quote- The convention in quoting an exchange rate expressed in terms of the number of units of local currency exchangeable for one unit of the foreign currency Euro- Currency for members of the Economic and Monetary Union Eurocurrency market- Unregulated and Informal market for bank loans and bank deposits denominated in a currency other than that of the country where the bank initiating the loan is located Exchange Rate- The amount of one currency that can be exchanged for a unit of another currency Indirect Quote- The convention in quoting an exchange rate expressed in terms of the number of units of foreign currency exchangeable for one unit of the local currency
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FinancialMarketsChap31 - Finance Notes Ch. 31 Covered...

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