Average Exchange Rate

Derivatives
ATM Implied Volatility
February 2, 2023
Derivatives
ATM-IV
February 2, 2023

An exchange rate that is calculated as a simple or weighted average of either current (spot) or historical exchange rate. It may be measured as the 12 month average of exchange rates observed at month-end.

Average exchange rates may be confined to a specific period, in which case, a period average exchange rate, being the arithmetic average of the reported monthly exchange rates during the defined period.

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