MGT 302 Study Guide - Midterm Guide: Foreign Exchange Spot, Spot Contract, Ophanim
Document Summary
Foreign exchange market - a market for converting the currency of one country into the currency of another. Exchange rate - the rate at which one currency is converted into another. Foreign exchange risk - the risk of an investment"s value changing due to changes in currency exchange rates. Arbitrage - the purchase of a product in one market for immediate resale in a second market in order to profit from a price discrepancy. Curre ncy speculation - short-term movement of funds from one currency to another in hopes of profiting from shifts in exchange rates. Spot exchanges - the exchange rate at which a foreign exchange dealer would convert one currency into another currency on that day. Forward exchange rate - the exchange rate at which a foreign exchange dea ler will agree to convert one currency into another currency on a specific date in the future.
