Parity and Pay down: Difference between pages

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imported>Doug Williamson
(Add link.)
 
imported>Doug Williamson
(Add final sentence about timing of repayments.)
 
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#A relationship between market prices at which there are no opportunities for [[arbitrage]]. The prices of composite [[synthetic]] instruments are exactly the same as the prices of the related [[outright]] instruments.
''Borrowings management''
#The official rate of exchange between two currencies, if there is one.
 
#An exchange rate of 1 between two currencies.  
To pay down debt means repaying the principal, in full or in part.
 
The paying down may be in accordance with a schedule agreed at the outset of the borrowing, or it may be faster repayment than originally envisaged.




== See also ==
== See also ==
* [[Arbitrage]]
* [[Debt]]
* [[Exchange rate]]
* [[Pay]]
* [[Interest rate parity]]
* [[Principal]]
* [[Outright]]
* [[Parity grid]]
* [[Put-call parity theory]]
* [[Synthetic]]

Revision as of 14:40, 9 September 2017

Borrowings management

To pay down debt means repaying the principal, in full or in part.

The paying down may be in accordance with a schedule agreed at the outset of the borrowing, or it may be faster repayment than originally envisaged.


See also