Examlex
Provide a curved arrow mechanism for the formation of the product.
Counterparty
The other organization or party involved in a financial transaction.
Interest Rate Differential
The difference in interest rates between two distinct economic or financial entities, typically affecting currency value or investment decisions.
Forward Exchange Rates
Exchange rates at which two parties agree to exchange currencies at a future date.
Interest Rate Parity
A theory which states that the difference in interest rates between two countries is equal to the difference between the forward exchange rate and the spot exchange rate.
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