Tag: parity

What are hard dollars Hard dollars are funds that are specifically designated for a particular purpose. In business, hard dollars usually refer to expenditures that...

What is 'Absolute Interest' Total and complete ownership of an asset or property. An individual with an absolute interest has both a...

What is 'Absolute Rate' The fixed portion of an interest-rate swap, expressed as a percentage rather than as a premium or a...

Currency carry trade refers to a strategy that is used by investors to sell currencies with low interest rates and purchase currencies with a...

What is 'Parity' Parity refers to two things being equal to each other. The term "par value" for a bond is similar...

What is 'Parity Bond' Two or more bond issues with equal rights to one another. In other words, a parity bond is...

What is 'Garbatrage' An increase in price and trading volume in a particular sector of the economy that occurs as a result...

An uncovered option is a type of option contract that is not hedged by an opposite position in the underlying security. This leaves the...

DefinitionUncovered interest arbitrage is an arbitrage trading strategy whereby an investor capitalizes on the interest rate differential between two countries. Unlike covered interest arbitrage,...

What is the 'Uncovered Interest Rate Parity - UIP' The uncovered interest rate parity (UIP) is a parity condition stating that the...