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Currency call option |
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Currency call optionContract that gives the holder the right to purchase a specific currency at a specified price (exchange rate) within a specific period of time.Currency call option Similar MatchesCurrency swapCurrency swapAn arrangement in which two parties exchange a series of cashflows in one currency for a series of cashflows in another currency, at agreed intervals over an agreed period.Companies would do this where they have existing borrowings in a currency which they want to convert into a borrowing in another currency. If its borrowing is at a fixed rate, and it is exchanging for another fixed rate borrowing, the swap is a 'fixed rate currency swap'.Unlike an interest rate swap, a currency swap usually does involve an exchange of the principal borrowed amount as well as the interest payments. Eurocurrency depositEurocurrency depositA short-term fixed-rate time deposit denominated in a currency other than the local currency (i.e., US dollars deposited in a London bank). Currency swingsCurrency swingsThese affect foreign currency mortgages. In pound sterling terms, the value of the capital outstanding on your mortgage can rise or fall dramatically if there is movement in the value of either the currency of the loan or UK pounds sterling. If the value of the pound increases, you should benefit from lower repayments, as the value of the foreign currency you have borrowed decreases. Less sterling is required to buy the same amount of foreign currency necessary to meet the repayments and vice versa. Vehicle currencyVehicle currencyThe currency used to invoice an international trade transaction, especially when it is not the national currency of either the importer or the exporter. Currency revaluationCurrency revaluationA deliberate upward adjustment in the official exchange rate established, or pegged, by government against a specified standard, such as another currency or gold. Further SuggestionsComptroller of the CurrencyCurrency selection Currency Eurocurrency market Under-valued currency Currency depreciation Asian Currency Units (ACU) Currency basket Currency reserves Currency depreciation Multicurrency loans Currency swap Currency bloc Currency futures contract Foreign currency futures contract Multicurrency clause Foreign currency translation Currency arbitrage currency conversion Currency risk sharing Convertible currency Canonical model of currency crises Eurocurrency European Currency Unit (ECU) Currency put option |
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