foreign exchange rate risk
21rate — The cost of debt service paid by a borrower or issuer to a lender or investor. The rate is expressed as an annual percentage of the amount borrowed. For some notes and bonds that pay interest semiannually, the semiannual interest due to the… …
22Exchange risk — The variability of a firm s value that results from unexpected exchange rate changes or the extent to which the present value of a firm is expected to change as a result of a given currency s appreciation or depreciation. The New York Times… …
23exchange risk — The variability of a firm s value that results from unexpected exchange rate changes, or the extent to which the present value of a firm is expected to change as a result of a given currency s appreciation or depreciation. Bloomberg Financial… …
24Currency risk — Categories of financial risk Credit risk Concentration risk Market risk Interest rate risk Currency risk Equity risk Commodity risk Liquidity risk Refinancing risk …
25Interest rate parity — is a no arbitrage condition representing an equilibrium state under which investors will be indifferent to interest rates available on bank deposits in two countries.[1] Two assumptions central to interest rate parity are capital mobility and… …
26Market risk — Categories of financial risk Credit risk Concentration risk Market risk Interest rate risk Currency risk Equity risk Commodity risk Liquidity risk Refinancing risk …
27Country Risk — A collection of risks associated with investing in a foreign country. These risks include political risk, exchange rate risk, economic risk, sovereign risk and transfer risk, which is the risk of capital being locked up or frozen by government… …
28currency risk — Related: exchange rate risk The potential for a shift in exchange rates, which would be detrimental to a trader s position. Chicago Mercantile Exchange Glossary * * * currency risk currency risk ➔ risk1 * * * The potential for losses arising… …
29Currency risk — Related: Exchange rate risk Currency risk sharing An agreement by the parties to a transaction to share the currency risk associated with the transaction. The arrangement involves a customized hedge contract embedded in the underlying transaction …
30Translation Risk — The exchange rate risk associated with companies that deal in foreign currencies or list foreign assets on their balance sheets. The greater the proportion of asset, liability and equity classes denominated in a foreign currency, the greater the… …
