Forex

Also known as foreign exchange risk

Answer explanation

Currency risk

financial risk that arises from the change in price of one currency against another.

Answer explanation

Currency risk

- foreign exchange risk

investors or companies face whenever they have assets or business operations across national borders

Answer explanation

Currency risk

- foreign exchange risk

- wether or not a certain risk factor affects a firms performance

Answer explanation

Exposure

- how much does a risk factor affect a firm's performance.

Answer explanation

Risk

- current price at which a commodity, currency or security can be purchased for immediate delivery.

Answer explanation

Spot rate

the price that is quoted in the market at any given time.

Answer explanation

Spot rate

- price at which a commodity, currency or security is agreed to be bought or sold at a specified future date.

Answer explanation

Forward rate

determined by supply and demand in the forward market, and they reflect the markets expectations of future prices.

Answer explanation

Forward rate

Measuring exposure

Answer explanation

Functional currency

Real value

Unanticipated changes