For example, a country with a large reserve of US dollars is in a position to make significant investments in US markets. Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.Want to thank TFD for its existence? Tell a friend about us, add a link ...
For example, if a company needs to pay a certain amount in a particular foreign currency at a given time in future to settle a trade, it can buy a call option on the currency maturing at that given time to hedge against its appreciation....
Call optionsprovide the holder the right (but not the obligation) to purchase an underlying asset at a specified price (the strike price), for a certain period of time. If the stock fails to meet the strike price before the expiration date, the option expires and becomes worthless. Investors...
ago; it was usually backed by some “standard” commodity of intrinsic value into which it could be freely converted on demand, but even during the early development of currency, issuance of inconvertible paper money, also called fiat money, was not infrequent (see, for example, Law, John)....
In an open devaluation, money was exchanged at a lower rate (for example, in Russia in 1839, 1 silver ruble equaled 3 rubles 50 kopeks in assignats); in a concealed devaluation, the exchange of money was effected at the nominal value but with a reduction of its gold or silver content...
accept other countries' currencies informally. Alternatively, a country may use the currency of another (as some countries have done with theU.S. dollar) or pool resources to make an international currency accepted in several countries (theeurobeing the most prominent example). See also:Foreign ...
In the example above, the buyer wants to sellCADand buy USD but expects the CAD to depreciate relative to the USD in the future. To hedge against the depreciation of the CAD (or vice versa, the appreciation of the USD), the buyer purchases a call on the USD. ...
CopilotExampleQuestion CopilotGlossaryTerm CopilotSynonyms credential Currency (TransactionCurrency) Custom API (CustomAPI) Custom API Request Parameter (CustomAPIRequestParameter) Custom API Response Property (CustomAPIResponseProperty) Custom Control (CustomControl) Custom Control Default Config (CustomControl...
aFor example, a euro option in CME or PSE is the right to buy or sell euro. Euro is the underlying currency and U.S. dollar is the counter currency. 例如,在CME或PSE是不错买或卖欧洲的一个欧洲选择。 欧洲部下的货币和美国。 美元是逆货币。 [translate] ...
Finally, a real-world example is provided to show that the uncertain fractional currency model is superior to the classical stochastic model. Keywords: fractional-order differential equation; uncertainty theory; currency option; optimistic value; uncertain hypothesis test 1. Introduction With the ...