Covered Interest Rate Parity
  
Two currencies. Financial ones...notot electric ones. They buzz along, such that a Martian dollar buys two American dollars. There exists a whole network of derivatives of those currencies: futures, forwards, various interest rate machinations. And the concept basically states a kind of immutable law in finance that well-defines the relationship of how these two currencies should trade, relative to each other. Or said another way, the law runs: the interest rate differential between two currencies in cash markets or money markets or equivalent short-term paper...should equal the differential between the forward and spot rates of the currencies.
That is, you'd take whatever price the Martian paper's forward contracts are trading at, then subtract them from that equivalent forward rate, and you should get the "correct" or market clearing interest rate for the currencies.
Of course, none of this will matter after the mother ship has blown Earth to kingdom come, but...it gives us something to keep ourselves occupied with in the meantime.
Related or Semi-related Video
Finance: What is Dead Cat Bounce?13 Views
Finance allah shmoop What is a dead cat bounce It
sounds like a dance move from the old west right
but it actually refers to a terrible situation when the
market plummets rebounds very slightly and then plummets again The
idea comes from the notion of dropping a cat off
of a high building It hits the cement dead bounces
a bit before then is a big wet thud Yeah
peeta no cats were harmed in the production of this
definition Thie market has fallen from five thousand twelve hundred
now it's at fourteen hundred and now it's back to
twelve hundred Yeah that uplift of two hundred points there
from twelve hundred fourteen hundred before it went back twelve
hundred which is the concrete that's the dead cat bounce
I'm not totally sure who came up with this term 00:00:50.247 --> [endTime] but wei have a pretty good idea
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