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see foreign exchangeforeign exchange,
methods and instruments used to adjust the payment of debts between two nations that employ different currency systems. A nation's balance of payments has an important effect on the exchange rate of its currency.
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References in periodicals archive ?
We also show that it is consistent with arbitrage-free pricing.
The following section presents the Nelson-Siegel Term Structure Models and explains how this model is extended to an arbitrage-free setting.
Implied volatility functions in arbitrage-free term structure models.
One can show this directly (24) or as a consequence of the theorem, because only prices consistent with risk-neutral valuation are arbitrage-free.
Piazzesi develops an arbitrage-free time-series model of yields that incorporates central bank policy.
Each spanning portfolio provides one estimate of the arbitrage-free return series for the target division.
This implies in turn that the arbitrage-free price of contingent claims is not unique.