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Currency option |
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Currency optionAn option to buy or sell a foreign currency.Currency option Similar MatchesOptimal currency areaOptimal currency areaThe optimal grouping of regions or countries within which exchange rates should be held fixed. First defined (as "optimum currency areas") by Mundell (1961). Currency arbitrageCurrency arbitrageTaking advantage of divergences in exchange rates in different money markets by buying a currency in one market and selling it in another market. Convertible currencyConvertible currencyA currency that can legally be exchanged for another or for gold. In times of crisis, governments sometimes restrict such exchange, giving rise to black market exchange rates. Currency risk sharingCurrency risk sharingAn agreement by the parties to a transaction to share the currency risk associated with the transaction. The arrangement involves a customized hedge contract embedded in the underlying transaction. Foreign currency forward contractForeign currency forward contractAgreement that obligates its parties to exchange given quantities of currencies at a prespecified exchange rate on a certain future date. Further SuggestionsBase currencyVirtual currency option Currency board Foreign currency futures contract currency swap European Currency Unit currency Currency in circulation Currency selection Eurocurrency deposit Artificial currency Over-valued currency Reporting currency Currency Currency bloc Currency revaluation Canonical model of currency crises Currency depreciation currency conversion Currency overvaluation European Currency Unit (ECU) Hard currency Currency hedge Currency depreciation currency loan |
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