In a Standard Forward Terminology, "Pips" Stands for

question 7

Multiple Choice

In a standard forward terminology, "Pips" stands for

• A) vulture profit seekers.
• B) the last two digits of the typical forward rate.
• C) a difference between the swap and forward rate.
• D) a difference between the swap and the spot rate.

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Definitions:

Present Value

The contemporary valuation of a future amount of money or cash flow sequence, based on an identified rate of return.

Corporate Profits Tax

A tax imposed by governments on the income of corporations, differentiating from personal income taxes.

Ceteris Paribus

A Latin phrase that means "all other things being equal," used in economics to isolate the effect of one variable changes while holding others constant.

Investment

Allocating financial assets or resources in the hope of receiving future income or profit.