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Why do cigarette smokers cough more than most people do?
Exchange Rate
The price of one country's currency in terms of another's, used in international trade and investment.
Spot Rate
The current market price at which a particular asset can be bought or sold for immediate delivery and payment.
Covered Interest Arbitrage
A strategy in which an investor uses a forward contract to hedge against exchange rate risk when investing in foreign interest-bearing instruments.
Nominal Risk-Free Rate
The rate of return on the safest investments, such as government bonds, without adjusting for inflation.
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