Examlex
Which one of the following students is elaborating as he takes notes in class?
Interest Rate Parity
A financial theory stating the difference in interest rates between two countries is equal to the expected change in exchange rates between their currencies.
Forward Contract
An agreement to buy or sell an asset at a future date for a price agreed upon today, without the standardization of futures contracts.
Exchange Rate Risk
The potential for investors to experience losses due to changes in the exchange rate between two currencies.
Short-term
This term usually refers to a period of time less than one year, often used in the context of finance for investments or liabilities.
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