An implied rate is an interest rate that is determined by the difference between the spot rate and the forward/futures rate. The degree of relative costliness of a future rate can be assessed by comparing the implied rate with the spot rate.

Calculated as:

For example, if the present spot rate of LIBOR is 5% and the forward rate for LIBOR is 6%, the implied rate is 1%. This situation merits the impression that the future rate for borrowing will be more expensive.

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This article examines the relation between dollar–real exchange rate volatility implied in option prices and subsequent realized volatility. It investigates whether implied volatilities contain information about volatility over the remaining life of the option that is not present in …

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This article examines the relation between dollar–real exchange rate volatility implied in option prices and subsequent realized volatility. It investigates whether implied volatilities contain information about volatility over the remaining life of the option that is not present in …

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This article examines the relation between dollar–real exchange rate volatility implied in option prices and subsequent realized volatility. It investigates whether implied volatilities contain information about volatility over the remaining life of the option that is not present in …

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This article examines the relation between dollar–real exchange rate volatility implied in option prices and subsequent realized volatility. It investigates whether implied volatilities contain information about volatility over the remaining life of the option that is not present in …

www.jstor.org [PDF]

This article examines the relation between dollar–real exchange rate volatility implied in option prices and subsequent realized volatility. It investigates whether implied volatilities contain information about volatility over the remaining life of the option that is not present in …

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This article examines the relation between dollar–real exchange rate volatility implied in option prices and subsequent realized volatility. It investigates whether implied volatilities contain information about volatility over the remaining life of the option that is not present in …

link.springer.com [PDF]

This article examines the relation between dollar–real exchange rate volatility implied in option prices and subsequent realized volatility. It investigates whether implied volatilities contain information about volatility over the remaining life of the option that is not present in …

www.worldscientific.com [PDF]

This article examines the relation between dollar–real exchange rate volatility implied in option prices and subsequent realized volatility. It investigates whether implied volatilities contain information about volatility over the remaining life of the option that is not present in …

www.tandfonline.com [PDF]

This article examines the relation between dollar–real exchange rate volatility implied in option prices and subsequent realized volatility. It investigates whether implied volatilities contain information about volatility over the remaining life of the option that is not present in …

www.tandfonline.com [PDF]

This article examines the relation between dollar–real exchange rate volatility implied in option prices and subsequent realized volatility. It investigates whether implied volatilities contain information about volatility over the remaining life of the option that is not present in …

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Some other ways to express an interest rate in finance include nominal, simple, effective, annualized, and compounded rates.

You need to calculate implied rates because they are important in determining borrowing costs for companies and individuals.

This information could be used when making decisions about whether or not to borrow money from a bank, how much money to borrow, and when to repay your loan.

Implied rate means the interest rate that would be paid on a loan if it were not for compounding.

You can calculate this by dividing the amount of money borrowed by the principal amount and multiplying it by 12.

You can assess the relative costliness of a future rate by comparing it with the spot rate.

An implied rate is an interest rate that is determined by the difference between the spot and forward rates.

You can calculate this by dividing the amount of money borrowed by the principal amount and multiplying it by 100%.

Calculating implies means to determine or estimate.

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