| 单词 | covered interest-rate parity |
| 释义 | covered interest-rate parity A relationship between spot and forward exchange rates and interest rates that should apply provided that the arbitrage-free condition holds. If, for example, a person invests in a UK short-term security, such as a Treasury Bill, then this is equivalent to exchanging the same principal from pounds into dollars at the spot rate, entering into a forward contract to change the dollars obtained at the expiry of the investment into pounds, and buying US short-term securities, such as US Treasury bills. The return on both investments is known, and both have the same credit risk. They are therefore equivalent, and so should provide the same sterling return. If that is the case, the relationship between spot rates, forward rates, and short-term interest rates in the two countries is the covered interest-rate parity. See also: |
| 随便看 |
|
英汉经管词典收录了5297条经济管理类英汉双解词条，基本涵盖了经济学、管理学、金融学、会计学、证券期货、商务活动等领域的常用英语单词及短语词组的翻译及用法，是学习及工作的有利工具。