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Currency factor |
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Currency factorThe portion of a rate of return that is due to the currency in which the asset is denominated. The currency factor can be nonzero either because of currency risk or because of expected appreciation or depreciation.Similar MatchesCurrency appreciationCurrency appreciationAn increase in the value of one currency relative to another currency. Appreciation occurs when, because of a change in exchange rates, a unit of one currency buys more units of another currency. Composite currencyComposite currencyA currency defined as a specified combination of two or more currencies, normally existing only as a unit of account rather than as a physical currency. Examples include the SDR and the ECU. Multicurrency loansMulticurrency loansGives the borrower the possibility of drawing a loan in different currencies. Currency reservesCurrency reservesThis usually means international reserves. Virtual currency optionVirtual currency optionA new option contract introduced by the PHLX in 1994 that is settled in US dollars rather than in the underlying currency. These options are also called 3-Ds (dollar-denominated delivery). Further SuggestionsCommon currencyCurrency basket Base currency Foreign currency translation Currency arbitrage Reserve currency Currency selection Moscow Interbank Currency Exchange (MICEX) Currency futures contract Optimal currency area currency Foreign currency option Eurocurrency deposit eurocurrency Currency risk Currency in circulation Strong Currency Currency option Currency speculation Currency hedge Currency in circulation Currency put option Currency swings Currency depreciation Over-valued currency |
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