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Question	Answer
Counterparty Risk	The risk that a counterparty will default on a financial obligation.
Liquidity Risk	The risk that a financial position cannot be sold quickly at prevailing prices.
Delivery risk	The risk that a buyer will not deliver payment of funds after a seller has delivered securities or foreign currencies that were purchased.
Rollover Risk	The risk of being closed out from a financial market and unable to renew (or roll over) a short term contract.
Systemic Risk	Refers to the possibility that a default by one counterparty somewhere in the world could provoke a ripple or cascade effect, jeopardizing the integrity of the international banking and financial system.
Covered Interest Parity	The equilibrium relationship between spot and forward exchange rates and money market interest rates.
Put-call-forward Parity	the relationship between put option prices, call option prices, and forward exchange prices.
Currency Swap Parity	the relationship between a fixed-rate US$ bond and a floating-rate bond in another currency combined with swaps to emulate a fixed-rate US$ bond.

Resource summary

	Created by thomasdelajoue about 11 years ago