Discount on forward rate
Revision as of 22:41, 29 October 2019 by Gary (talk | contribs) (Created page with "Discount on forward rate is an amount of the difference between the forward rate and the spot rate when the forward rate is below the spot rate. ==Definitions== Accordi...")
Discount on forward rate is an amount of the difference between the forward rate and the spot rate when the forward rate is below the spot rate.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Discount on forward rate. Occurs when the forward exchange rate differs from the spot rate. When the forward rate is below the spot rate, the forward rate is said to be at a discount.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
