Forward Rate - Related Instruments

Related Instruments

  • Forward rate agreement
  • Floating rate note

A forward discount is when the forward rate of one currency relative to another currency is higher than the spot rate.

A forward premium is when the forward rate of one currency relative to another currency is lower than the spot rate.

Read more about this topic:  Forward Rate

Famous quotes containing the words related and/or instruments:

    “The question of place and climate is most closely related to the question of nutrition. Nobody is free to live everywhere; and whoever has to solve great problems that challenge all his strength actually has a very restricted choice in this matter. The influence of climate on our metabolism, its retardation, its acceleration, goes so far that a mistaken choice of place and climate can not only estrange a man from his task but can actually keep it from him: he never gets to see it.”
    —Friedrich Nietzsche (1844–1900)

    “The universe appears to me like an immense, inexorable torture-garden.... Passions, greed, hatred, and lies; law, social institutions, justice, love, glory, heroism, and religion: these are its monstrous flowers and its hideous instruments of eternal human suffering.”
    —Octave Mirbeau (1850–1917)