A currency trading strategy aimed at profiting from the interest rate differential between two currencies.
The absence of opportunities to earn a risk-free profit with no investment, ensuring market equilibrium.
An economic theory stating that the price of a given asset or good will have the same price when exchange rates are accounted for.
A financial strategy involving the simultaneous purchase and sale of an asset in different markets to profit from price differences.
A theory of asset pricing that assumes arbitrage ensures equilibrium and that asset prices are explained by a set of underlying factors.
A fundamental equation in financial economics for valuing options, derived from a model of continuous trading and used to remove arbitrage opportunities.
Exploration of the concept of Covered Interest Parity and its relevance in Economics and Finance.
An economic concept that ensures the equality of returns on investments in different currencies when adjusted for forward exchange rates, preventing arbitrage opportunities.
A comprehensive understanding of Purchasing Power Parity (PPP) in economics
Trade associated with travel, typically involving cross-border transactions by individual entrepreneurs or small firms.
