1 / 28

International Monetary Economics

This article provides an in-depth review of asset markets, covering key concepts, convenient references, and the properties of assets. It discusses the no-profit condition, Covered Interest Parity (CIP), and risk elimination strategies. Examples and numerical illustrations are included to enhance understanding.

sailor
Télécharger la présentation

International Monetary Economics

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. International Monetary Economics

  2. ASSET MARKETS A REVIEW

  3. Key Concepts

  4. Convenient References

  5. What are Asset Markets?

  6. Properties of Assets

  7. No-profit condition

  8. CIP

  9. How to solve for the CIP condition?

  10. How to eliminate the risk?

  11. A Perfect Hedge

  12. CIP condition

  13. Where to look for forward rates

  14. Numerical Example

  15. Numerical Example

  16. What happens when the investor does not eliminate risk by engaging in a forward contract?

  17. Risk Diversification

  18. The Price of Risk

  19. Uncovered Interest Rate Parity (UIP) condition (1)

  20. Uncovered Interest Rate Parity (UIP) condition (2)

  21. Uncovered Interest Rate Parity (UIP) condition (3)

  22. Modified Uncovered Interest Rate Parity (UIP) condition

  23. What form does the Risk Premium take in the Market?

  24. Information and Market Efficiency

  25. Examples of the no-profit condition

  26. NEW TOPIC

  27. Linking Asset Markets and International Monetary Economics

  28. The Term Structure of Interest Rates

More Related