Examlex
The covered interest rate parity condition can be stated as follows: The interest rate on dollar deposits equals the interest rate on euro deposits ________ the forward ________ on euros against dollars.
Representativeness Heuristic
The reliance on stereotypes, analogies, or limited samples to form opinions about an entire class.
House Money
A term from Behavioral Finance referring to the tendency of individuals to take greater risks when trading with profits from prior trades, viewing it as "play money."
Arbitrage Reaction
The immediate activity performed by arbitrageurs to exploit price differences between markets or securities for profit.
Risks
The probability or threat of damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through preemptive action.
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