____________ Consist of a List of Potential Behaviors That Observers

question 22

Short Answer

____________ consist of a list of potential behaviors that observers identify and note the number of times each behavior occurs.

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Definitions:

Exchange Rate Risk

The potential for loss due to fluctuating foreign exchange rates affecting international financial transactions.

Forward Currency

A contract to exchange a specific amount of one currency for another at a future date and at a predetermined rate, used to hedge against currency risk.

Premium

An amount paid in addition to the standard or nominal cost, often associated with insurance, bonds, or the difference above a product's nominal value.

Spot Rate

The current market price at which a particular asset, such as currency, commodity, or security can be bought or sold for immediate delivery.