Definition of Spot month

Spot month

The nearest delivery month on a futures contract.

Contract month

The month in which futures contracts may be satisfied by making or accepting a delivery.
Also called value managers, those who assemble portfolios with relatively lower betas, lower price-book and
P/E ratios and higher dividend yields, seeing value where others do not.

Devaluation A decrease in the spot price of the currency

Monthly income preferred security (MIP)

Preferred stock issued by a subsidiary located in a tax haven.
The subsidiary relends the money to the parent.

Spot exchange rates

Exchange rate on currency for immediate delivery. Related: forward exchange rate.

Spot futures parity theorem

Describes the theoretically correct relationship between spot and futures prices.
Violation of the parity relationship gives rise to arbitrage opportunities.

Spot interest rate

Interest rate fixed today on a loan that is made today. Related: forward interest rates.

Spot lending

The origination of mortgages by processing applications taken directly from prospective borrowers.

Spot markets

Related: cash markets

Spot price

The current marketprice of the actual physical commodity. Also called cash price.

Spot rate

The theoretical yield on a zero-coupon Treasury security.

Spot rate curve

The graphical depiction of the relationship between the spot rates and maturity.

Spot trade

The purchase and sale of a foreign currency, commodity, or other item for immediate delivery.

Theoretical spot rate curve

A curve derived from theoretical considerations as applied to the yields of
actually traded Treasury debt securities because there are no zero-coupon Treasury debt issues with a maturity
greater than one year. Like the yield curve, this is a graphical depiction of the term structure of interest rates.

Spot curve, spot yield curve

See Zero curve.

Spot rate

The current interest rate appropriate for discounting a cash flow of
some given maturity.

spot rate of exchange

Exchange rate for an immediate transaction.

Spot

For immediate payment and delivery, as opposed to future payment and delivery.

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