transaction risk
1Transaction Risk — The exchange rate risk associated with the time delay between entering into a contract and settling it. The greater the time differential between the entrance and settlement of the contract, the greater the transaction risk, because there is more …
2transaction risk — One of nine risks defined by the Office of the Comptroller of the Currency. The risk to earnings or capital arising from problems with service or product delivery. The Federal Reserve and most banks refer to this risk as operations or operational …
3Risk arbitrage — Risk arbitrage, or merger arbitrage, is an investment or trading strategy often associated with hedge funds. Two principal types of merger are possible: a cash merger, and a stock merger. In a cash merger, an acquirer proposes to purchase the… …
4Transaction exposure — Risk to a firm with known future cash flows in a foreign currency that arises from possible changes in the exchange rate. Related:translation exposure. The New York Times Financial Glossary …
5transaction exposure — risk to a firm with known future cash flows in a foreign currency, that arises from possible changes in the exchange rate. Related: translation exposure. Bloomberg Financial Dictionary …
6Risk-neutral measure — In mathematical finance, a risk neutral measure, is a prototypical case of an equivalent martingale measure. It is heavily used in the pricing of financial derivatives due to the fundamental theorem of asset pricing, which implies that in a… …
7risk — In insurance law, the danger or hazard of a loss of the property insured; the casualty contemplated in a contract of insurance; the degree of hazard; a specified contingency or peril; and, colloquially, the specific house, factory, ship, etc.,… …
8risk elimination — The complete removal of a *risk. Unlike *risk avoidance, risk elimination does not necessarily imply nonengagement in (or disengagement from) an activity or *market. Risk elimination techniques can be costly. For example, an organization can… …
9risk premium — market risk premium 1) The difference between the expected rate of return on an investment and the risk free rate of return over the same period. If there is any risk element at all, the rate of return should be higher than if no risk were… …
10transaction exposure — The risk that the cost of a transaction will change because of exchange rate movements between the date of the transaction and the date of settlement …
