Examlex
In the Far East, it is considered polite for a woman to shake a man's hand.
Covered Interest Arbitrage
A strategy in which an investor uses a forward contract to hedge against exchange rate risk when investing in foreign interest-bearing instruments.
Nominal Risk-Free Rate
The rate of return on the safest investments, such as government bonds, without adjusting for inflation.
Forward Rate
The future interest rate agreed upon in a forward contract, which is a derivative financial instrument.
Covered Interest Arbitrage
An investment strategy where an investor takes advantage of the interest rate differential between two countries while hedging exchange rate risk.
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