1. The document discusses various currency derivatives including forward contracts, futures contracts, and options contracts. Forward contracts allow corporations to lock in exchange rates for future currency needs, while futures and options are used by corporations for hedging and by speculators.
2. Currency futures contracts are standardized and exchange-traded, whereas forward contracts are customized over-the-counter contracts. Options provide the right but not obligation to buy or sell a currency.
3. The use of currency derivatives allows corporations to hedge currency risk and reduce fluctuations in value, while speculation in these markets allows some traders to profit but does not consistently generate large profits due to market efficiency.
describing the exchange rate systems, explaining how government uses direct and indirect intervention to influence exchange rates, and how government intervention in the forex markets.
describing the exchange rate systems, explaining how government uses direct and indirect intervention to influence exchange rates, and how government intervention in the forex markets.
This presentation covers foreign exchange risk definition, types, management and measurement. Hedging tools and techniques; both internal and external are also discussed.
Currency derivatives is a kind of new class of assets available for investment. Please go through this PPT which will give you some idea about currency & Currency derivatives.
explain about techniques for hedging transaction exposure, how to used hedge future, option, money market for payable and receivable, comparing techniques for hedging vs not-hedging
here we are trying to explain how firms can benefit from forecasting exchange rate, to describe common technique that used to forecast, how to evaluate forecasting performance
Meaning of the Term “Foreign Exchange”, Exchange Market, Statutory basis of Foreign Exchange, Evolution of Exchange Control, Outline of Exchange Rate and Types, Import Export
India’s Forex Scenario: BOP crisis of 1990, LOERMS, Convertibility.
Introduction to International Monetary Developments: Gold standard, Bretton Woods’s system, Fixed Flexible Exchange Rate Systems, Euro market.
This presentation covers foreign exchange risk definition, types, management and measurement. Hedging tools and techniques; both internal and external are also discussed.
Currency derivatives is a kind of new class of assets available for investment. Please go through this PPT which will give you some idea about currency & Currency derivatives.
explain about techniques for hedging transaction exposure, how to used hedge future, option, money market for payable and receivable, comparing techniques for hedging vs not-hedging
here we are trying to explain how firms can benefit from forecasting exchange rate, to describe common technique that used to forecast, how to evaluate forecasting performance
Meaning of the Term “Foreign Exchange”, Exchange Market, Statutory basis of Foreign Exchange, Evolution of Exchange Control, Outline of Exchange Rate and Types, Import Export
India’s Forex Scenario: BOP crisis of 1990, LOERMS, Convertibility.
Introduction to International Monetary Developments: Gold standard, Bretton Woods’s system, Fixed Flexible Exchange Rate Systems, Euro market.
Introduction to Exchange Rate Mechanism: Spot- Forward Rate, Exchange Arithmetic. -- Deriving the Actual Exchange Rate: Forwards, Swaps, Futures and Options. Guarantees in Trade: Performance, Bid Bond etc.
here we are explaining exchange rate movements, how the equilibrium exchange rate is determined, what kind of factor that affect the equilibrium exchange rate
this chapter we are going to explain key, components of the BoP, and explain how the international flow of funds is influenced by economic factors and other factors
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
2. Chapter Objectives
• To explain how forward contracts are
used for hedging based on anticipated exchange
rate movements; and
• To explain how currency futures contracts and
currency options contracts are used for hedging or
speculation based on anticipated exchange rate
movements.
3. Forward Market
• The forward market facilitates the trading of
forward contracts on currencies.
• A forward contract is an agreement between a
corporation and a commercial bank to exchange a
specified amount of a currency at a specified
exchange rate (called the forward rate) on a
specified date in the future.
4. Forward Market
• When MNCs anticipate future need or future
receipt of a foreign currency, they can set up
forward contracts to lock in the exchange rate.
• Forward contracts are often valued at $1 million or
more, and are not normally used by consumers or
small firms.
5. Forward Market
• As with the case of spot rates, there is a bid/ask
spread on forward rates.
• Forward rates may also contain a premium or
discount.
• If the forward rate exceeds the existing spot rate, it
contains a premium.
• If the forward rate is less than the existing spot rate, it
contains a discount.
6. Forward Market
• annualized forward premium/discount
=
forward rate – spot rate
×
360
spot rate n
where n is the number of days to maturity
• Example: Suppose £ spot rate = $1.681,
90-day £ forward rate = $1.677.
$1.677 – $1.681 x
360 = –0.95%
$1.681 90
So, forward discount = 0.95%
7. Forward Market
• The forward premium/discount reflects the
difference between the home interest rate and the
foreign interest rate, so as to prevent arbitrage.
8. Forward Market
• A non-deliverable forward contract (NDF) is a
forward contract whereby there is no actual
exchange of currencies. Instead, a net payment is
made by one party to the other based on the
contracted rate and the market rate on the day of
settlement.
• Although NDFs do not involve actual delivery, they
can effectively hedge expected foreign currency
cash flows.
9. Currency Futures Market
• Currency futures contracts specify a standard
volume of a particular currency to be exchanged on
a specific settlement date, typically the third
Wednesdays in March, June, September, and
December.
• They are used by MNCs to hedge their currency
positions, and by speculators who hope to
capitalize on their expectations of exchange rate
movements.
10. Currency Futures Market
• The contracts can be traded by firms or individuals
through brokers on the trading floor of an
exchange (e.g. Chicago Mercantile Exchange), on
automated trading systems (e.g. GLOBEX), or over-
the-counter.
• Participants in the currency futures market need to
establish and maintain a margin when they take a
position.
11. Currency Futures Market
Forward Markets Futures Markets
Contract size Customized. Standardized.
Delivery date Customized. Standardized.
Participants Banks, brokers, Banks, brokers,
MNCs. Public MNCs. Qualified
speculation not public speculation
encouraged. encouraged.
Security Compensating Small security
deposit bank balances or deposit required.
credit lines needed.
12. Clearing Handled by Handled by
operation individual banks exchange
& brokers. clearinghouse.
Daily settlements
to market prices.
Currency Futures Market
Marketplace Worldwide Central exchange
telephone floor with global
network. communications.
Forward Markets Futures Markets
13. Regulation Self-regulating. Commodity
Futures Trading
Commission,
National Futures
Association.
Currency Futures Market
Liquidation Mostly settled by Mostly settled by
actual delivery. offset.
Transaction Bank’s bid/ask Negotiated
Costs spread. brokerage fees.
Forward Markets Futures Markets
14. Currency Futures Market
• Normally, the price of a currency futures contract is
similar to the forward rate for a given currency and
settlement date, but differs from the spot rate
when the interest rates on the two currencies
differ.
• These relationships are enforced by the potential
arbitrage activities that would occur otherwise.
15. Currency Futures Market
• Currency futures contracts have no credit risk since
they are guaranteed by the exchange
clearinghouse.
• To minimize its risk in such a guarantee, the
exchange imposes margin requirements to cover
fluctuations in the value of the contracts.
16. Currency Futures Market
• Speculators often sell currency futures when they
expect the underlying currency to depreciate, and
vice versa.
1. Contract to sell
500,000 pesos
@ $.09/peso
($45,000) on
June 17.
April 4
2. Buy 500,000 pesos
@ $.08/peso
($40,000) from the
spot market.
June 17
3. Sell the pesos to
fulfill contract.
Gain $5,000.
17. Currency Futures Market
• Currency futures may be purchased by MNCs to
hedge foreign currency payables, or sold to hedge
receivables.
1. Expect to receive
500,000 pesos.
Contract to sell
500,000 pesos @
$.09/peso on June
17.
April 4
2. Receive 500,000
pesos as expected.
June 17
3. Sell the pesos at the
locked-in rate.
18. Currency Futures Market
• Holders of futures contracts can close out their
positions by selling similar futures contracts. Sellers
may also close out their positions by purchasing
similar contracts.
1. Contract to
buy
A$100,000
@ $.53/A$
($53,000) on
March 19.
January 10
3. Incurs $3000
loss from
offsetting
positions in
futures
contracts.
March 19
2. Contract to
sell
A$100,000
@ $.50/A$
($50,000) on
March 19.
February 15
19. Currency Futures Market
• Most currency futures contracts are closed out
before their settlement dates.
• Brokers who fulfill orders to buy or sell futures
contracts earn a transaction or brokerage fee in the
form of the bid/ask spread.
20. Currency Options Market
• A currency option is another type of contract that
can be purchased or sold by speculators and firms.
• The standard options that are traded on an
exchange through brokers are guaranteed, but
require margin maintenance.
• U.S. option exchanges (e.g. Chicago Board Options
Exchange) are regulated by the Securities and
Exchange Commission.
21. Currency Options Market
• In addition to the exchanges, there is an over-the-
counter market where commercial banks and
brokerage firms offer customized currency options.
• There are no credit guarantees for these OTC
options, so some form of collateral may be
required.
• Currency options are classified as either calls or
puts.
22. Currency Call Options
• A currency call option grants the holder the right to
buy a specific currency at a specific price (called the
exercise or strike price) within a specific period of
time.
• A call option is
• in the money if spot rate > strike price,
• at the money if spot rate = strike price,
• out of the money
if spot rate < strike price.
23. Currency Call Options
• Option owners can sell or exercise their options.
They can also choose to let their options expire. At
most, they will lose the premiums they paid for
their options.
• Call option premiums will be higher when:
• (spot price – strike price) is larger;
• the time to expiration date is longer; and
• the variability of the currency is greater.
24. Currency Call Options
• Firms with open positions in foreign currencies may
use currency call options to cover those positions.
• They may purchase currency call options
• to hedge future payables;
• to hedge potential expenses when bidding on projects;
and
• to hedge potential costs when attempting to acquire
other firms.
25. Currency Call Options
• Speculators who expect a foreign currency to
appreciate can purchase call options on that
currency.
• Profit = selling price – buying (strike) price – option
premium
• They may also sell (write) call options on a currency
that they expect to depreciate.
• Profit = option premium – buying price + selling
(strike) price
26. Currency Call Options
• The purchaser of a call option will break even when
selling price = buying (strike) price + option premium
• The seller (writer) of a call option will break even
when
buying price = selling (strike) price + option premium
27. Currency Put Options
• A currency put option grants the holder the right to
sell a specific currency at a specific price (the strike
price) within a specific period of time.
• A put option is
• in the money if spot rate < strike price,
• at the money if spot rate = strike price,
• out of the money
if spot rate > strike price.
28. Currency Put Options
• Put option premiums will be higher when:
• (strike price – spot rate) is larger;
• the time to expiration date is longer; and
• the variability of the currency is greater.
• Corporations with open foreign currency positions
may use currency put options to cover their
positions.
• For example, firms may purchase put options to hedge
future receivables.
29. Currency Put Options
• Speculators who expect a foreign currency to
depreciate can purchase put options on that
currency.
• Profit = selling (strike) price – buying price – option
premium
• They may also sell (write) put options on a currency
that they expect to appreciate.
• Profit = option premium + selling price – buying (strike)
price
30. Currency Put Options
• One possible speculative strategy for volatile
currencies is to purchase both a put option and a
call option at the same exercise price. This is called
a straddle.
• By purchasing both options, the speculator may
gain if the currency moves substantially in either
direction, or if it moves in one direction followed by
the other.
31. Contingency Graphs for Currency Options
+$.02
+$.04
-$.02
-$.04
0
$1.46 $1.50 $1.54
Net Profit
per Unit
Future
Spot
Rate
For Buyer of £ Call Option
Strike price = $1.50
Premium = $ .02
+$.02
+$.04
-$.02
-$.04
0
$1.46 $1.50 $1.54
Net Profit
per Unit
Future
Spot
Rate
For Seller of £ Call Option
Strike price = $1.50
Premium = $ .02
32. Contingency Graphs for Currency Options
+$.02
+$.04
-$.02
-$.04
0
$1.46 $1.50 $1.54
Net Profit
per Unit
Future
Spot
Rate
For Seller of £ Put Option
Strike price = $1.50
Premium = $ .03
+$.02
+$.04
-$.02
-$.04
0
$1.46 $1.50 $1.54
Net Profit
per Unit
Future
Spot
Rate
For Buyer of £ Put Option
Strike price = $1.50
Premium = $ .03
33. Conditional Currency Options
• A currency option may be structured such that the
premium is conditioned on the actual currency
movement over the period of concern.
• Suppose a conditional put option on £ has an
exercise price of $1.70, and a trigger of $1.74. The
premium will have to be paid only if the £’s value
exceeds the trigger value.
34. Conditional Currency Options
Option Type Exercise Price Trigger Premium
basic put $1.70 - $0.02
$1.66 $1.70 $1.74 $1.78 $1.82
$1.66
$1.68
$1.70
$1.72
$1.74
$1.76
$1.78
NetAmountReceived
Spot
Rate
Basic
Put
Conditional
Put
Conditional
Put
conditional put $1.70 $1.74 $0.04
35. Conditional Currency Options
• Similarly, a conditional call option on £ may specify
an exercise price of $1.70, and a trigger of $1.67.
The premium will have to be paid only if the £’s
value falls below the trigger value.
• In both cases, the payment of the premium is
avoided conditionally at the cost of a higher
premium.
36. European Currency
Options
• European-style currency options are similar to
American-style options except that they can only
be exercised on the expiration date.
• For firms that purchase options to hedge future
cash flows, this loss in terms of flexibility is
probably not an issue. Hence, if their premiums are
lower, European-style currency options may be
preferred.
37. Efficiency of
Currency Futures and Options
• If foreign exchange markets are efficient,
speculation in the currency futures and options
markets should not consistently generate
abnormally large profits.
• A speculative strategy requires the speculator to
incur risk. On the other hand, corporations use the
futures and options markets to reduce their
exposure to fluctuating exchange rates.
38. Impact of Currency Derivatives on an MNC’s Value
( ) ( )[ ]
( )∑
∑
+
×
=
n
t
t
m
j
tjtj
k1=
1
,,
1
ERECFE
=Value
E (CFj,t ) = expected cash flows in currency j to be
received by the U.S. parent at the end of period t
E (ERj,t ) = expected exchange rate at which
currency j can be converted to dollars at the end of
period t
k = weighted average cost of capital of the
Currency Futures
Currency Options
39. Chapter Review
• Forward Market
• How MNCs Use Forward Contracts
• Non-Deliverable Forward Contracts
40. Chapter Review
• Currency Futures Market
• Contract Specifications
• Comparison of Currency Futures and Forward Contracts
• Pricing Currency Futures
• Credit Risk of Currency Futures Contracts
• Speculation with Currency Futures
• How Firms Use Currency Futures
• Closing Out A Futures Position
• Transaction Costs of Currency Futures
42. Chapter Review
• Currency Put Options
• Factors Affecting Currency Put Option Premiums
• Hedging with Currency Put Options
• Speculating with Currency Put Options
• Contingency Graphs for Currency Options
• Contingency Graphs for the Buyers and Sellers of Call
and Put Options
43. Chapter Review
• Conditional Currency Options
• European Currency Options
• Efficiency of Currency Futures and Options
• How the Use of Currency Futures and Options
Affects an MNC’s Value