M3 and Outright: Difference between pages

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imported>John Grout
(To add cross reference to Dvisia Money)
 
imported>Doug Williamson
(Reference outright expressly.)
 
Line 1: Line 1:
''Economics.''
In relation to derivative financial instruments, an outright is one which commits both parties to the contracted exchange at maturity.
 
Examples include forward foreign exchange contracts, and forward rate agreements.
 
 
Outright instruments are contrasted with options.
 
Under an option, one of the parties has a choice about whether to make the exchange at maturity, and will only do so if it is in their interests to do so at the time, based on prevailing market prices.


A broad measure of [[money supply]] which includes M2 plus longer-term time deposits and money market funds with more than 24-hour maturity.




== See also ==
== See also ==
* [[Broad money]]
* [[Derivative instrument]]
* [[M2]]
* [[Forward foreign exchange contract]]
* [[Divisia money]]
* [[Option]]
 
[[Category:Context_of_treasury]]

Revision as of 14:12, 21 May 2015

In relation to derivative financial instruments, an outright is one which commits both parties to the contracted exchange at maturity.

Examples include forward foreign exchange contracts, and forward rate agreements.


Outright instruments are contrasted with options.

Under an option, one of the parties has a choice about whether to make the exchange at maturity, and will only do so if it is in their interests to do so at the time, based on prevailing market prices.


See also