Business / Finance / Expectations Theory Of Forward Exchange Rates: Theories of the term structure of interest rates, which include the pure expectations theory; the liquidity theory of the term structure, and the preferred habitat theory. These theories hold that each forward rate equals the expected future interest rate for the relevant period. These three theories differ, however, on whether other factors also affect forward rates, and how.
Exchange Adjective Synonyms: trade, barter, switch, change, interchange, reciprocate, return, swap or swop
Exchange Verb Synonyms: market, stock market, Stock Exchange, securities exchange, the Market, the Board, the Big Board, the Exchange, the Bourse, Wall Street, the Street
Forward Adverb Synonyms: advance, further, promote, back, foster, support, aid, assist, help, patronize, encourage, nourish, nurse along
Forward Adjective Synonyms: (well-)advanced, (well-)developed, progressive, precocious, forward-looking
Forward Noun Synonyms: advance, leading, foremost, front, head, first
Forward Verb Synonyms: speed (up), accelerate, advance, hasten, expedite, hurry, quicken, step up
Business / Finance / Payoff Diagram: In option pricing, a graph of the value of the option position at expiration as a function of the underlying asset price. MORE