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Define Spot, Forward, and Swap Transactions in the Foreign Exchange

question 14

Essay

Define spot, forward, and swap transactions in the foreign exchange market and give an example of how each could be used.


Definitions:

Wilcoxon Signed Rank Test

A nonparametric statistical hypothesis test used when comparing two related samples or repeated measurements on a single sample to assess whether their population mean ranks differ.

Tied Values

Occur when two or more entities in a dataset have the same value on a particular measure.

Ranks

The ordinal positions of values in a dataset, arranged in ascending or descending order.

Kruskal-Wallis Test

A nonparametric statistical test used to compare three or more independent groups of sampled data to determine if there is a difference in their medians.

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