Spot Rate
(1) The current exchange rate for trading a currency in the open market. The rate is expressed as the conversion of foreign into base currency.
(2) The theoretical yield on a zero-coupon Treasury security.
Spot rate
The theoretical yield on a zero-coupon Treasury security.
Similar financial terms
Spot volatilities
The volatilities used to price a cap when a different volatility is used for each caplet.
spot rate - Related Articles
Forward Interest Rates
Calculations ...
Spot rate
Definition: [crh] The theoretical yield on a zero-coupon Treasury security.
EXPECTED SPOT RATE - The exchange rate between two currencies that is anticipated to prevail in the spo...
EXPECTED VALUE - The weighted average of possible outcomes, with the weights being the probabilities of...
Spot rate curve
The graphical depiction of the relationship between the spot rates and maturity.
Steepening of the yield curve ...
Spot Rate
The rate (price per unit) for purchase or sale of a commodity or foreign exchange for immediate delivery.
Spotting ...
Spot Rate: The price prevailing in the spot market.
Spouse's Allowance: A monthly pension payable to a spouse, widower who is aged 60 to 64 of an OAS pensioner.
Spot rate:
In foreign exchange dealings this is the rate quoted for immediate delivery of a foreign currency.
Français: Taux au comptant
Español: Precio de entrega inmediata ...
spot rate The rate of interest on a spot loan that accumulates interest to maturity.
spot settlement Settlement of a trade almost immediately-within a number of trading days that is standardized for each market.
Spot rate - Refers to the price at which a currency can be purchased or sold and then delivered within two business days, e.g., spot dollar.
Spot price - The current market price.
Spot rate The theoretical on a zero-coupon Treasury .
Spot rate curve The graphical depiction of -the relationship between the spot rates and maturity.
Current Spot Rates (9.00am)
10th October 2011
USD EUR AUD CAD CHF DKK NOK HKD SEK ZAR JPY
GBP 1.5627 1.1538 1.5816 1.6116 1.4294 8.5988 9.0158 12.1700 10.54 12.25 119.822
USD 1.3534 1.3603 1.3861 1.2294 7.3955 7.7542 10.47 9.07 10.54 103.055
EUR 0.
since the spot rate at time t is r(t) = f(t,t).
The assumption of the HJM model is that the forward rates satisfy for any :
(4) ...
Theoretical spot rate curve
A curve derived from theoretical considerations as applied to the yields of actually traded Treasury debt securities, because there are no zero-coupon Treasury debt issues with a maturity greater than one year.
Spot rate
The exchange rate on the spot market. Also called the spot exchange rate.
Spread
1. The difference between the price one must pay to buy something, such as a currency, and the price one receives for selling it.
2.
Analyzing future spot rates on the basis of a market-determined exchange rate (such as the current spot rate or forward rate). Market-based corporate governance system ...
Definition: The spot rate is the exchange rate existing in the market at any given moment in time. It is the rate you would be able to buy foreign currency at "now".
Market-based forecasting Analyzing future spot rates on the basis of a market-determined exchange rate (such as the current spot rate or forward rate).
Spot rate The theoretical yield on a zero-coupon Treasury security. Spot rate curve The graphical depiction of the relationship between the spot rates and maturity.
spot rate The theoretical yield on a zero-coupon Treasury. spot trading A type of trading that involves cash sales for immediate delivery. spousal IRA A traditional IRA or Roth IRA set up by a married person in the name of his...
Interest rate parity theorem Expression that the interest rate differential between two countries is equal to the difference between the forward foreign exchange rate and the spot rate.
Unbiased expectations hypothesis Theory that forward exchange rates are unbiased predictors of future spot rates. See Forward parity. Unbiased predictor A theory that spot prices at some future date will be equal to today's forward rates.
Hedge quality Measured by the R-square in a regression of spot rate changes on futures price changes.
This is an option that is exercised against an average of observed spot rates rather than the terminal spot rate. Fixed interval averaging of the observations occurs at a predetermined frequency.
When the forward rate is equal to the spot rate.
Premium
A forward exchange rate standing at a premium over today's rate means that the currency concerned is more expensive in the forward market than now. If the 1 month forward dollar rate is 1.
Forward trades in FX are usually expressed as a margin above (premium) or below (discount) the spot rate. To obtain the actual forward FX price, one adds the margin to the spot rate.
The future spot rate tends to move in the opposite direction from that forecast by the forward rate at least as often as in the indicated direction! ...
On the date of sale, December 1, 20X1, the spot rate for the pound was $1.75. Vigeland prepared financial statements at its year end on December 31, 20X1, at which time the spot rate for the pound was $1.90.
1) The spread over an issuer's spot rate curve, developed as a measure of
the yield spread that can be used to convert dollar differences between theoretical value and market price.
2) The cost of the implied call embedded in a MBS, ...
The rate quoted is the spot rate. For example, a dealer may agree on Tuesday to sell U.S. dollars and buy Japanese yen for current delivery. The contract is completed on Thursday, when funds are exchanged and delivery takes place.
convert the cash at spot rates
enter into a forward contract to convert the cash plus the expected interest at the same rate
invest the money at the higher rate
convert back through the forward contract ...
Z-Spread - Zero Violatility Spread - The constant spread that will make the price of a security equal to the present value of its cash flows when added to the yield at each point on the spot rate Treasury curve where a cash flow is received .
For example, assume that the spot rate between the U.S. dollar and the Deutsche Mark is $1 - DM2 and that the prevailing annual rates of interest on the dollar and the mark are 18 and 10 percent respectively.
This is a foreign exchange derivative contract based on a synthetic or constructed forward contract in which settlement is based on the difference between two foreign exchange forward rates and not the spot rate.
An interest rate that is determined by the difference between the spot rate and the forward/futures rate. The degree of relative costliness of a future rate can be assessed by comparing the implied rate with the spot rate.
Calculated as: ...
Bootstrapping definition :
Creating a theoretical spot rate curve using one yield projection as the basis for the yield of the next maturity. Bootstrapping follows the work of Efron. It involves a Monte Carloapproach.
What's A Spread?
A process of creating a theoretical spot rate curve, using one yield projection as the basis for the yield of the next maturity.
Personal Finance Headlines
SEARCH: ...
FORWARD-RATE AGREEMENTS (FRAS) - Cash payments are made daily as the spot rate varies above or below an...
FORWARDER - Acts as a travel agent for cargo. A forwarder specializes in arranging the transport and co...
Treasury spot rate curve. Key rate duration is calculated by changing the market rate for one specific maturity point on the yield curve while holding all other variables constant.
Theory that forward exchange rates are unbiased predictors of future spot rates.
Unbiased predictor
A theory that spot prices at some future date will be equal to today's forward rates.
AT THE MONEY (ATM) - A currency option whose strike price is equal to the prevailing spot rate or the p...
AT THE MONEY OPTION - an option purchased by an investor to buy or sell, with a strike price equal to t...
Purchase or sale of a specific quantity of a commodity, government security, foreign currency, or other financial instrument at the current or spot rate, with delivery and settlement at a specified future date.
Front Running ...
In other words, the actual price of an instrument right now; this term is often used for stock indices, whereas the synonymous term of spot is more often applied to forex and commodity prices. See also Spot Rate.
 See also: Banks, Yield curve, Values, Expected return, Expense
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