COMMERCE 3FA3 Chapter : 3FA3-CH21.docx

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 3FA3
• Professor: Trevor Chamberlain

Document Summary

Cross-rate: the implicit exchange rate between two currencies (usually non-us) quoted in some third currency (usually the us dollars) Eurobond: international bonds issued in multiple countries but denominated in a single currency (usually the issuer"s currency) Eurocurrency: money deposited in a financial centre outside of the country whose currency is involved. Export development canada (edc): federal crown corporation that promotes canadian exports by making loans to foreign purchasers. Foreign bonds: international bonds issued in a single country, usually denominated in that country"s currency. Gilts: british and irish government securities, including issues at local british authorities and some overseas public-sector offerings. London interbank offer rate (libor): the rate most international banks charge one another for overnight eurodollar loans. Swaps: agreements to exchange 2 securities or currencies. Exchange rate: the price of ones country"s currency expressed in another country"s currency. Spot trade: an agreement to trade currencies based on the exchange rate today for settlement in 2 days.