'Foreign interest rate' diaporamas de présentation

Chapter 7 International Investment and Diversification

Chapter 7 International Investment and Diversification. Outline. Introduction Why international diversification makes theoretical sense Foreign exchange risk Investments in emerging markets Political risk Other topics related to international diversification. Introduction.

1.62k views • 102 slides

Ch. 10: The Exchange Rate and the Balance of Payments.

Ch. 10: The Exchange Rate and the Balance of Payments. Exchange rates Definition Determinants Short run Long run Purchasing power parity Interest rate parity Balance of payments accounts Causes of an international deficit Alternative exchange rate policies and their long-run effects.

880 views • 48 slides

Ch. 10: The Exchange Rate and the Balance of Payments.

Ch. 10: The Exchange Rate and the Balance of Payments. Exchange rates Definition Determinants Short run Long run Purchasing power parity Interest rate parity Balance of payments accounts Causes of an international deficit Alternative exchange rate policies and their long-run effects.

729 views • 48 slides

Ch. 10: The Exchange Rate and the Balance of Payments.

Ch. 10: The Exchange Rate and the Balance of Payments. Exchange rates Definition Determinants Short run Long run Purchasing power parity Interest rate parity Balance of payments accounts Causes of an international deficit Alternative exchange rate policies and their long-run effects.

637 views • 48 slides

Foreign Exchange 3/21/2012

698 views • 46 slides

Exchange Rate Crises: How Pegs Work and How They Break

20. Exchange Rate Crises: How Pegs Work and How They Break. Prepared by: Fernando Quijano Dickinson State University. Introduction. The typical fixed exchange rate succeeds for a few years, only to break. A recent study found that the average duration of any peg was about five years.

584 views • 43 slides

IRP and Arbitrage

378 views • 35 slides

XI. Open economy in Keynesian models

XI. Open economy in Keynesian models. Reminder- Lecture III. Definitions: floating and fixed ExR Asset approach to ExR determination Monetary approach and purchasing power parity Real ExR and price level. Rationale for this Lecture.

455 views • 35 slides

Obstfeld, Shambaugh & Taylor (2005)

The Trilemma in History: Tradeoffs Among Exchange Rates, Monetary Policies, and Capital Mobility. Obstfeld, Shambaugh & Taylor (2005). Overview. Hypotheses Regimes with fixed exchange rates will experience less monetary policy autonomy.

411 views • 32 slides

Lecture 6

Lecture 6. UNDERSTANDING EXCHANGE RATES (2). Exchange rates in the short run. The theory of the long-run behavior of exchange rates cannot explain the large changes of current (spot) exchange rates.

784 views • 29 slides

Exchange rates and the economy

Exchange rates and the economy. In this lecture we will model the operation of our IS-LM model in an open economy with fixed or floating exchange rates. An open economy has two meanings here: Goods market: trades goods and services

349 views • 24 slides

Week 9

326 views • 23 slides

Arbitrage - The purchase of a commodity, including foreign

INTERNATIONAL ARBITRAGE. Arbitrage - The purchase of a commodity, including foreign exchange, in one market at one price while simultaneously selling that same currency in another market at a more advantageous price, in order to obtain a risk-free profit on the price differential.

596 views • 23 slides

1997 Thai Currency Crisis

1997 Thai Currency Crisis. ECON 462 Professor Castillo Spring 2011. Team 4 Abdiqani Hassan Louisa Pangilinan Yang Qichen. Causes of the Crisis. Baht was pegged to the U.S. dollar U.S. dollar appreciated, Thailand became less competitive Net exports declined

875 views • 22 slides

MGRECON401 Economics of International Business and Multinationals LECTURE 9

MGRECON401 Economics of International Business and Multinationals LECTURE 9. Financial Management in Multinationals. Lecture Focus. Investment decisions in foreign currency Hedging Transaction Exposure Hedging Translation Exposure Hedging Operating Exposure.

312 views • 19 slides

Hedging with Foreign Currency Options

Hedging with Foreign Currency Options. By Soeren Hansen. What is an Option?. A Currency Option is an option, but not an obligation to buy or sell currency during a specified time period (time to maturity, T) at a specified price (exercise/strike price, X)

334 views • 16 slides

Spot quotations 1. Direct quotes: DC/FC e.g. $/DM 2. Indirect quotes: FC/DC e.g. DM/$

The interbank market is the wholesale market where the major banks trade with one another. Most currency transactions occur here. The interbank market is generally referred to as the foreign exchange market. Spot market: currencies trade for immediate delivery (within 2 days of the trade)

442 views • 14 slides

Lecture 6 Open Economy

Lecture 6 Open Economy. Open and Closed Economies. A closed economy is one that does not interact with other economies in the world. There are no exports, no imports, and no capital flows. An open economy is one that interacts freely with other economies around the world.

296 views • 10 slides

Session 22

Session 22. How Does the Open Macro-economy Work?. National Macro-economic Performance Goals. Internal Balance. Full employment, or an acceptably low unemployment rate. Price stability, or an acceptably low inflation rate. External balance.

152 views • 10 slides

Variations on a theme: extensions to Black-Scholes-Merton option pricing

Variations on a theme: extensions to Black-Scholes-Merton option pricing. Dividends options on Futures (Black model) currencies (Garman-Kohlhagen). Finance 70520, Spring 2002 Risk Management & Financial Engineering The Neeley School S. Mann. Martingale pricing : risk-neutral Drift.

259 views • 7 slides