Premium on forward rate
Revision as of 20:45, 28 October 2019 by Gary (talk | contribs) (Created page with "Premium on forward rate is a rate that occurs when the forward exchange rate differs from the spot rate. When the forward rate is above the spot rate, it is said to be at...")
Premium on forward rate is a rate that occurs when the forward exchange rate differs from the spot rate. When the forward rate is above the spot rate, it is said to be at a premium.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Premium on forward rate. Occurs when the forward exchange rate differs from the spot rate. When the forward rate is above the spot rate, it is said to be at a premium.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
