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In calculating power we calculate a statistic called delta (δ) . This statistic is
Exchange Rate
The worth of one currency in relation to another for converting between them, showing the amount one currency is equivalent to in another currency.
Interest Rate Parity
A theory which posits that the difference between the interest rates of two countries is equal to the difference between the forward exchange rate and the spot exchange rate.
Interest Rate Differential
The difference in interest rates between two financial instruments or two countries, often influencing currency values and investment flows.
Forward Exchange Rate
The agreed-upon exchange rate for currencies to be exchanged on a specified future date.
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