This document provides an outline of key topics from Chapter 4 of the textbook "International Financial Management" including:
1) It introduces the foreign exchange market, its participants like banks and brokers, and how correspondent banking relationships facilitate transactions.
2) It describes the spot market, including how spot rates are quoted, the bid-ask spread, and how triangular arbitrage works.
3) It discusses the forward market, including how forward rates are quoted, long and short positions, forward premiums, and swap transactions.
The outline covers major sections that will be explained in the chapter, laying the foundation for understanding exchange rates.
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International Finance Practice NumericalCharu Rastogi
This document contains 13 questions regarding foreign exchange rates, calculations of spot rates, forward rates, cross rates, and arbitrage opportunities. It includes calculating bid/ask spreads, mid rates, direct/indirect quotes, percentage spreads, and using multiple exchange rates to analyze arbitrage scenarios.
This page is created for promoting SVFXPro Trader and to provide assistance to forex traders, who want to learn forex.
SVFXPro trader is a moderate, dependable and advance investment platform allowing traders to identify, understand and adopt strongest investment strategies. These strategies are approved by renowned trade giants and they are synchronized in risk-rated manner. SVFX includes only those strategies to the platform which are certain, proved and sustain in a qualitative level.
SVFX offers easy, adoptable but strongest Forex Trading Platform and it is offering Forex Trading in India. It prominently maintains the International Currency Trading standard and proved itself as legitimate and invincible in the International Forex Trading. International trading with SVFX will always be a wise decision because of its qualitative services.
This document provides an overview of international finance concepts including:
1. Types of currency quotes (direct, indirect) and how to convert between them.
2. Types of exchange rates (bid, offer, spread).
3. How to determine the appropriate rate to use when exposed to foreign currency (bid for receivables, offer for payables).
4. How to calculate cross rates between currencies not directly quoted by using a common currency.
5. How forward contracts can be used to hedge and eliminate currency risk on foreign currency receivables and payables.
This document provides information on international finance topics including international banking, money markets, bond markets, equity markets, and derivatives markets such as currency futures, options, and swaps. It discusses the key features of currency futures contracts including standardization, daily settlement, margin requirements, and major currency futures exchanges. Examples are provided to illustrate how to read currency futures quotes and calculate profits and losses from long and short futures positions.
The document provides an overview of the foreign exchange market, including its key participants and characteristics. It describes the types of transactions that occur in the market such as spot transactions, forwards, and swaps. It also discusses important concepts like cross rates, triangular arbitrage, and measuring changes in exchange rates. The foreign exchange market facilitates the international transfer of currencies and helps minimize exposure to exchange rate risk. It is the largest financial market in the world with over $2 trillion in average daily turnover.
The document describes a mathematical model for currency arbitrage. Currency arbitrage involves simultaneously buying and selling currencies in different markets to profit from temporary price differences. The model seeks to maximize final dollar holdings by determining the optimal amounts to convert between US dollars, euros, British pounds, Japanese yen, and Kuwaiti dinars, given exchange rates and transaction limits. The model is formulated as a linear program to find the currency conversion amounts that maximize profits through arbitrage opportunities across multiple currencies.
The document provides an introduction to forex trading, including:
- Forex is the largest financial market allowing 24/5 trading of currency pairs.
- Currency pairs involve buying or selling one currency for another at an exchange rate.
- Traders can go "long" to profit from an appreciating currency or go "short" to profit from a depreciating one.
- Risk management tools like stop losses and position sizing are important for success.
- Forex offers benefits like leverage, low costs, and opportunities to trade in any market direction.
FREE FOREX Trading System training from Novice to Professional.
Learn making Money through Forex Trading.
Send invite to your friends and colleagues through this event portfolio
Feel FREE to SHARE this post SHARE/Tag your friends.
International Finance Practice NumericalCharu Rastogi
This document contains 13 questions regarding foreign exchange rates, calculations of spot rates, forward rates, cross rates, and arbitrage opportunities. It includes calculating bid/ask spreads, mid rates, direct/indirect quotes, percentage spreads, and using multiple exchange rates to analyze arbitrage scenarios.
This page is created for promoting SVFXPro Trader and to provide assistance to forex traders, who want to learn forex.
SVFXPro trader is a moderate, dependable and advance investment platform allowing traders to identify, understand and adopt strongest investment strategies. These strategies are approved by renowned trade giants and they are synchronized in risk-rated manner. SVFX includes only those strategies to the platform which are certain, proved and sustain in a qualitative level.
SVFX offers easy, adoptable but strongest Forex Trading Platform and it is offering Forex Trading in India. It prominently maintains the International Currency Trading standard and proved itself as legitimate and invincible in the International Forex Trading. International trading with SVFX will always be a wise decision because of its qualitative services.
This document provides an overview of international finance concepts including:
1. Types of currency quotes (direct, indirect) and how to convert between them.
2. Types of exchange rates (bid, offer, spread).
3. How to determine the appropriate rate to use when exposed to foreign currency (bid for receivables, offer for payables).
4. How to calculate cross rates between currencies not directly quoted by using a common currency.
5. How forward contracts can be used to hedge and eliminate currency risk on foreign currency receivables and payables.
This document provides information on international finance topics including international banking, money markets, bond markets, equity markets, and derivatives markets such as currency futures, options, and swaps. It discusses the key features of currency futures contracts including standardization, daily settlement, margin requirements, and major currency futures exchanges. Examples are provided to illustrate how to read currency futures quotes and calculate profits and losses from long and short futures positions.
The document provides an overview of the foreign exchange market, including its key participants and characteristics. It describes the types of transactions that occur in the market such as spot transactions, forwards, and swaps. It also discusses important concepts like cross rates, triangular arbitrage, and measuring changes in exchange rates. The foreign exchange market facilitates the international transfer of currencies and helps minimize exposure to exchange rate risk. It is the largest financial market in the world with over $2 trillion in average daily turnover.
The document describes a mathematical model for currency arbitrage. Currency arbitrage involves simultaneously buying and selling currencies in different markets to profit from temporary price differences. The model seeks to maximize final dollar holdings by determining the optimal amounts to convert between US dollars, euros, British pounds, Japanese yen, and Kuwaiti dinars, given exchange rates and transaction limits. The model is formulated as a linear program to find the currency conversion amounts that maximize profits through arbitrage opportunities across multiple currencies.
The document provides an introduction to forex trading, including:
- Forex is the largest financial market allowing 24/5 trading of currency pairs.
- Currency pairs involve buying or selling one currency for another at an exchange rate.
- Traders can go "long" to profit from an appreciating currency or go "short" to profit from a depreciating one.
- Risk management tools like stop losses and position sizing are important for success.
- Forex offers benefits like leverage, low costs, and opportunities to trade in any market direction.
A-4-2-Lecture in International Finance (1).pptMadhuri Kadam
The document provides an overview of an international finance lecture given by Dr. Foued Ayari. It introduces Dr. Ayari's background and qualifications. The lecture outline covers major topics in foreign exchange markets including the FX market structure, spot and forward rates, currency swaps, and FX strategies. Key aspects of the FX market are defined, such as the OTC market structure, major participants like international banks, and 24/7 global trading.
This chapter introduces students to the foreign exchange market. It discusses key participants in the FX market such as banks, brokers, and customers. It also outlines the spot market where currencies are traded for immediate delivery, and the forward market where currencies are traded for future delivery. The chapter covers important concepts like bid-ask spreads, cross-exchange rates, triangular arbitrage, and correspondent banking relationships that facilitate FX trading.
The foreign exchange market involves the daily global purchase and sale of national currencies totaling $4 trillion per day. It has experienced huge growth recently and vastly exceeds other financial markets in size. While the forex market includes spot transactions, it is largely composed of derivatives contracts used to hedge currency risk. For more information on trading in this massive market, the document recommends visiting the website FX-Arabia.
The document discusses the foreign exchange market. It describes the market as consisting of two tiers - the interbank market for large transactions over $1 million and the retail market for smaller transactions. It identifies the major participants in the market as banks, corporations, individuals, speculators, arbitrageurs, and central banks. Spot transactions settle in two days while forward transactions settle at a future date at a pre-agreed exchange rate. Cross-rates can be used when one currency pair is not actively traded by calculating the rate using a third currency. Triangular arbitrage involves finding profitable simultaneous exchanges between three different currency pairs.
This document summarizes the topics and discussions for an international economics class. The class will cover chapters on foreign direct investment, political economy of FDI, foreign exchange, and the international monetary system. They will have two discussions - one on Western automobile firms investing in Russia and another on China's currency change. The document then provides discussion questions for each chapter to help students review the material in preparation for an upcoming midterm exam.
This document contains the agenda and discussion topics for an international economics class. The topics include foreign direct investment, political economy of FDI, foreign exchange, and the international monetary system. Chapters from the textbook are reviewed and discussed. Specific topics of discussion are Western automobile firms investing in Russia and China's recent currency change. The document also includes questions for students about the midterm exam and questions to prompt discussion of various international economics concepts.
FM2 Session 8 & 9 - International Corporate Finance (1).pdfPratyushKumar908783
This document discusses several key concepts in international corporate finance:
1) It outlines key topics like foreign exchange markets, exchange rates, purchasing power parity, interest rate parity, and exchange rate risk.
2) It explains how exchange rates are quoted, the difference between spot and forward rates, and theories like PPP, interest rate parity, and the international Fisher effect that aim to explain exchange rate movements.
3) It illustrates the different types of exchange rate risk multinational firms face and methods they use to manage exchange rate risk, as well as the impact of political risk on international investments.
Chapter5 International Finance ManagementPiyush Gaur
The document provides answers and solutions to questions about the foreign exchange market. It defines the market as encompassing the conversion of currencies and trading of currency options and futures. It describes the retail and interbank markets, with retail transactions making up 14% of trades. Major participants are international banks, their customers, non-bank dealers, brokers, and central banks. Interbank trades are settled through correspondent bank accounts. A currency trading at a premium in the forward market has a higher forward price than spot price. Most trading involves the US dollar due to its international use. Banks can eliminate currency exposure from client forward trades through swap transactions. Triangular arbitrage exploits price differences between currency pairs.
Foreign Exchange Operation in Bangladesh Krishi Bank.pptAlMamun637121
1. Gain a deeper understanding of international finance and foreign exchange markets by researching topics not covered in the document.
2. Look for opportunities to apply my knowledge of foreign exchange rates, quotations, and cross-rates to solve practical problems or analyze real-world scenarios.
3. Continue developing strong summarization skills to distill complex financial documents and clearly communicate their most important insights.
This document provides information on international finance topics including international banking, money markets, bond markets, equity markets, and derivatives markets such as currency futures, options, and swaps. It discusses the key features of currency futures contracts including standardization, daily settlement, margin requirements, and major currency futures exchanges. Examples are provided to illustrate how to read currency futures quotes and calculate profits and losses from long and short futures positions during daily settlements.
The document discusses several methods for hedging against currency risk when receiving 1 million British pounds in 6 months, including:
1) Entering a forward contract with a bank at 1.5179 USD/GBP, guaranteeing receipt of USD 1,517,900.
2) Using futures contracts at 1.5204 USD/GBP, netting USD 1,517,359 after commissions.
3) Borrowing pounds at 11% interest and converting/investing dollars at a 5% rate, receiving less than the forward methods.
4) Buying a put option at 1.53 USD/GBP for a net of USD 1,515,000, but retaining upside potential if
The document discusses several methods for hedging against currency risk when receiving 1 million British pounds in 6 months, including:
1) Entering a forward contract with a bank at 1.5179 USD/GBP, guaranteeing receipt of USD 1,517,900.
2) Using futures contracts at 1.5204 USD/GBP, netting USD 1,517,359 after commissions.
3) Borrowing pounds at 11% interest and converting/investing dollars at a 5% rate, receiving less than the forward methods.
4) Buying a put option at 1.53 USD/GBP for a net of USD 1,515,000, but retaining upside potential if
مدرسة الفوركس
دروس تعليم فوركس كاملة من البداية الى الاحتراف و تساعدك فى تعلم الفوركس و ألية التجارة فيه و كيفية تحقيق ربح مناسب من التجارة فى الفوركس.
The document discusses several topics related to foreign direct investment, international monetary systems, and currency exchange rates:
1. It outlines discussions on Western automobile firms investing in Russia and China's recent currency change.
2. It reviews chapters from a textbook on foreign direct investment, political economy, foreign exchange, and the international monetary system.
3. It includes questions and answers on these topics, such as the impact of foreign investment in Ireland and debates around regulating foreign direct investment.
4. It discusses currency swap examples and applications of interest rate parity and purchasing power parity theories to forecast exchange rates.
In 3 sentences or less, this document summarizes topics to be discussed or reviewed related to foreign investment,
Slides on Introduction to Treasury Division in Banking, its Roles, Structure, Products, Equipment, Dealer and Brokers, Dealing Terminology,Dealer Code of Conduct, Money Market, Forex, Swap, Option, IRS, CCS, Derivatives, Types of Financial Markets, Forex Deal example
Forex is a $5 trillion-per-day market!
That’s an insane amount of money changing hands EVERY day.
And if you know exactly where to look and what to do you can bank fast currency profits…
Bank Petrocommerce conducts foreign exchange and money market operations as a major market maker in Russia. It performs deposit and conversion transactions with many Russian and foreign banks through established credit lines. Counterparty banks must enter a master agreement to conduct interbank operations within credit or secured limits.
The foreign exchange market involves spot transactions which settle in 2 days and forward transactions which settle after 2 days. Currency quotes give the price of one currency in terms of another, with the first being the base currency and the second the terms currency. Quotes show the dealer's buy and sell prices. Cross-rates between non-USD currencies are calculated using direct USD quotes. Forward rates are quoted in points above or below the spot rate to reflect
This document contains a disclaimer for trading commodities, forex, and options which carries high risk. It notes the large potential rewards but also large potential risks, and that you must be willing and able to accept the risks. It states this is not an offer or solicitation to buy or sell, and no guarantees of profit or loss are being made. Past performance is not indicative of future results. It also notes there are limitations to hypothetical or simulated performance results. The disclaimer concludes that you expressly understand and agree the trading platform provider shall not be liable for any direct, indirect, incidental, special, or consequential damages from use of the platform.
1. The document discusses various derivatives concepts including forwards, futures, options, and hedging strategies.
2. It provides examples of how to calculate forward prices based on the interest rate differential between the underlying asset and borrowing rates.
3. It also discusses option concepts such as call and put options, strike prices, and factors that influence option prices.
This document summarizes a research paper about hardware-enhanced association rule mining using hashing and pipelining (HAPPI). The HAPPI architecture proposes three hardware modules: 1) a systolic array that compares candidate itemsets to a database to find frequent itemsets, 2) a trimming filter that determines item frequencies to eliminate infrequent items, and 3) a hash table that is used to filter unnecessary candidate itemsets. The HAPPI architecture aims to reduce the number of candidate itemsets and database items loaded into hardware to address bottlenecks in previous hardware approaches for association rule mining. Experimental results showed that HAPPI significantly outperforms previous hardware and software methods.
1. The document describes a proposed system called HAPPI (HAsh-based and PiPelIned) architecture for hardware-enhanced association rule mining. HAPPI aims to solve performance bottlenecks in existing Apriori-based hardware schemes by reducing the frequency of loading the database into hardware.
2. HAPPI includes three hardware modules - a systolic array to compare candidate itemsets with database items, a trimming filter to eliminate infrequent items, and a hash table to filter unnecessary candidate itemsets.
3. The proposed HAPPI system is intended to address limitations of existing Apriori-based approaches that involve repeatedly loading large candidate itemsets and databases into hardware.
A-4-2-Lecture in International Finance (1).pptMadhuri Kadam
The document provides an overview of an international finance lecture given by Dr. Foued Ayari. It introduces Dr. Ayari's background and qualifications. The lecture outline covers major topics in foreign exchange markets including the FX market structure, spot and forward rates, currency swaps, and FX strategies. Key aspects of the FX market are defined, such as the OTC market structure, major participants like international banks, and 24/7 global trading.
This chapter introduces students to the foreign exchange market. It discusses key participants in the FX market such as banks, brokers, and customers. It also outlines the spot market where currencies are traded for immediate delivery, and the forward market where currencies are traded for future delivery. The chapter covers important concepts like bid-ask spreads, cross-exchange rates, triangular arbitrage, and correspondent banking relationships that facilitate FX trading.
The foreign exchange market involves the daily global purchase and sale of national currencies totaling $4 trillion per day. It has experienced huge growth recently and vastly exceeds other financial markets in size. While the forex market includes spot transactions, it is largely composed of derivatives contracts used to hedge currency risk. For more information on trading in this massive market, the document recommends visiting the website FX-Arabia.
The document discusses the foreign exchange market. It describes the market as consisting of two tiers - the interbank market for large transactions over $1 million and the retail market for smaller transactions. It identifies the major participants in the market as banks, corporations, individuals, speculators, arbitrageurs, and central banks. Spot transactions settle in two days while forward transactions settle at a future date at a pre-agreed exchange rate. Cross-rates can be used when one currency pair is not actively traded by calculating the rate using a third currency. Triangular arbitrage involves finding profitable simultaneous exchanges between three different currency pairs.
This document summarizes the topics and discussions for an international economics class. The class will cover chapters on foreign direct investment, political economy of FDI, foreign exchange, and the international monetary system. They will have two discussions - one on Western automobile firms investing in Russia and another on China's currency change. The document then provides discussion questions for each chapter to help students review the material in preparation for an upcoming midterm exam.
This document contains the agenda and discussion topics for an international economics class. The topics include foreign direct investment, political economy of FDI, foreign exchange, and the international monetary system. Chapters from the textbook are reviewed and discussed. Specific topics of discussion are Western automobile firms investing in Russia and China's recent currency change. The document also includes questions for students about the midterm exam and questions to prompt discussion of various international economics concepts.
FM2 Session 8 & 9 - International Corporate Finance (1).pdfPratyushKumar908783
This document discusses several key concepts in international corporate finance:
1) It outlines key topics like foreign exchange markets, exchange rates, purchasing power parity, interest rate parity, and exchange rate risk.
2) It explains how exchange rates are quoted, the difference between spot and forward rates, and theories like PPP, interest rate parity, and the international Fisher effect that aim to explain exchange rate movements.
3) It illustrates the different types of exchange rate risk multinational firms face and methods they use to manage exchange rate risk, as well as the impact of political risk on international investments.
Chapter5 International Finance ManagementPiyush Gaur
The document provides answers and solutions to questions about the foreign exchange market. It defines the market as encompassing the conversion of currencies and trading of currency options and futures. It describes the retail and interbank markets, with retail transactions making up 14% of trades. Major participants are international banks, their customers, non-bank dealers, brokers, and central banks. Interbank trades are settled through correspondent bank accounts. A currency trading at a premium in the forward market has a higher forward price than spot price. Most trading involves the US dollar due to its international use. Banks can eliminate currency exposure from client forward trades through swap transactions. Triangular arbitrage exploits price differences between currency pairs.
Foreign Exchange Operation in Bangladesh Krishi Bank.pptAlMamun637121
1. Gain a deeper understanding of international finance and foreign exchange markets by researching topics not covered in the document.
2. Look for opportunities to apply my knowledge of foreign exchange rates, quotations, and cross-rates to solve practical problems or analyze real-world scenarios.
3. Continue developing strong summarization skills to distill complex financial documents and clearly communicate their most important insights.
This document provides information on international finance topics including international banking, money markets, bond markets, equity markets, and derivatives markets such as currency futures, options, and swaps. It discusses the key features of currency futures contracts including standardization, daily settlement, margin requirements, and major currency futures exchanges. Examples are provided to illustrate how to read currency futures quotes and calculate profits and losses from long and short futures positions during daily settlements.
The document discusses several methods for hedging against currency risk when receiving 1 million British pounds in 6 months, including:
1) Entering a forward contract with a bank at 1.5179 USD/GBP, guaranteeing receipt of USD 1,517,900.
2) Using futures contracts at 1.5204 USD/GBP, netting USD 1,517,359 after commissions.
3) Borrowing pounds at 11% interest and converting/investing dollars at a 5% rate, receiving less than the forward methods.
4) Buying a put option at 1.53 USD/GBP for a net of USD 1,515,000, but retaining upside potential if
The document discusses several methods for hedging against currency risk when receiving 1 million British pounds in 6 months, including:
1) Entering a forward contract with a bank at 1.5179 USD/GBP, guaranteeing receipt of USD 1,517,900.
2) Using futures contracts at 1.5204 USD/GBP, netting USD 1,517,359 after commissions.
3) Borrowing pounds at 11% interest and converting/investing dollars at a 5% rate, receiving less than the forward methods.
4) Buying a put option at 1.53 USD/GBP for a net of USD 1,515,000, but retaining upside potential if
مدرسة الفوركس
دروس تعليم فوركس كاملة من البداية الى الاحتراف و تساعدك فى تعلم الفوركس و ألية التجارة فيه و كيفية تحقيق ربح مناسب من التجارة فى الفوركس.
The document discusses several topics related to foreign direct investment, international monetary systems, and currency exchange rates:
1. It outlines discussions on Western automobile firms investing in Russia and China's recent currency change.
2. It reviews chapters from a textbook on foreign direct investment, political economy, foreign exchange, and the international monetary system.
3. It includes questions and answers on these topics, such as the impact of foreign investment in Ireland and debates around regulating foreign direct investment.
4. It discusses currency swap examples and applications of interest rate parity and purchasing power parity theories to forecast exchange rates.
In 3 sentences or less, this document summarizes topics to be discussed or reviewed related to foreign investment,
Slides on Introduction to Treasury Division in Banking, its Roles, Structure, Products, Equipment, Dealer and Brokers, Dealing Terminology,Dealer Code of Conduct, Money Market, Forex, Swap, Option, IRS, CCS, Derivatives, Types of Financial Markets, Forex Deal example
Forex is a $5 trillion-per-day market!
That’s an insane amount of money changing hands EVERY day.
And if you know exactly where to look and what to do you can bank fast currency profits…
Bank Petrocommerce conducts foreign exchange and money market operations as a major market maker in Russia. It performs deposit and conversion transactions with many Russian and foreign banks through established credit lines. Counterparty banks must enter a master agreement to conduct interbank operations within credit or secured limits.
The foreign exchange market involves spot transactions which settle in 2 days and forward transactions which settle after 2 days. Currency quotes give the price of one currency in terms of another, with the first being the base currency and the second the terms currency. Quotes show the dealer's buy and sell prices. Cross-rates between non-USD currencies are calculated using direct USD quotes. Forward rates are quoted in points above or below the spot rate to reflect
This document contains a disclaimer for trading commodities, forex, and options which carries high risk. It notes the large potential rewards but also large potential risks, and that you must be willing and able to accept the risks. It states this is not an offer or solicitation to buy or sell, and no guarantees of profit or loss are being made. Past performance is not indicative of future results. It also notes there are limitations to hypothetical or simulated performance results. The disclaimer concludes that you expressly understand and agree the trading platform provider shall not be liable for any direct, indirect, incidental, special, or consequential damages from use of the platform.
1. The document discusses various derivatives concepts including forwards, futures, options, and hedging strategies.
2. It provides examples of how to calculate forward prices based on the interest rate differential between the underlying asset and borrowing rates.
3. It also discusses option concepts such as call and put options, strike prices, and factors that influence option prices.
This document summarizes a research paper about hardware-enhanced association rule mining using hashing and pipelining (HAPPI). The HAPPI architecture proposes three hardware modules: 1) a systolic array that compares candidate itemsets to a database to find frequent itemsets, 2) a trimming filter that determines item frequencies to eliminate infrequent items, and 3) a hash table that is used to filter unnecessary candidate itemsets. The HAPPI architecture aims to reduce the number of candidate itemsets and database items loaded into hardware to address bottlenecks in previous hardware approaches for association rule mining. Experimental results showed that HAPPI significantly outperforms previous hardware and software methods.
1. The document describes a proposed system called HAPPI (HAsh-based and PiPelIned) architecture for hardware-enhanced association rule mining. HAPPI aims to solve performance bottlenecks in existing Apriori-based hardware schemes by reducing the frequency of loading the database into hardware.
2. HAPPI includes three hardware modules - a systolic array to compare candidate itemsets with database items, a trimming filter to eliminate infrequent items, and a hash table to filter unnecessary candidate itemsets.
3. The proposed HAPPI system is intended to address limitations of existing Apriori-based approaches that involve repeatedly loading large candidate itemsets and databases into hardware.
The document discusses a facial recognition system based on locality preserving projections (LPP). It begins by explaining that existing facial recognition systems using PCA and LDA aim to preserve global structure but local structure is more important. It then proposes a system using LPP, which aims to preserve local manifold structure by modeling the image space as a nearest-neighbor graph. The system represents faces as "Laplacianfaces" in a low-dimensional subspace that preserves local structure for more accurate identification. It provides theoretical analysis showing how PCA, LDA and LPP can be derived from different graph models.
Facial recognition systems analyze facial images to identify individuals. They measure facial features to create a unique template for each face. Historically, early systems used neural networks to recognize aligned faces. More advanced techniques like eigenfaces, laplacianfaces, and locality preserving projections map faces into subspaces to analyze them. Facial recognition has improved accuracy in identifying faces with variations in expression. However, it has limitations as it only utilizes a subset of human facial nodal points and does not account for manifold structure or biometric characteristics. Future areas of development include 3D recognition and unobtrusive audio-video identification systems.
Worldwide market and trends for electronic manufacturing servicesStudsPlanet.com
New Venture Research Corporation is a market research and business development consultancy that has specialized in contract manufacturing and outsourcing for over 15 years. They produce widely quoted syndicated research on the electronics manufacturing services industry. The presentation summarizes trends in the worldwide electronics assembly market between 2007-2012, with the computer and communications segments growing the fastest. It also reviews growth in the EMS market by geographic region as well as direct labor costs and leading contract manufacturers in key regions like Mexico, Eastern Europe, and China. In conclusion, the author predicts continued strong growth in the EMS market, particularly in low-cost regions, over the next 5 years.
This document provides an executive summary of the world electronic industries from 2008 to 2013. It finds that while the electronics industry experienced a decline in 2009 due to the financial crisis, production of professional electronic equipment is expected to drive overall growth above average between 2008 and 2013. Specifically, industrial and medical electronics will contribute significantly to industry growth. Additionally, China is projected to outperform other regions in recovering from the economic downturn. The summary highlights innovation and integration across various applications as keys to the long-term prospects of the electronics industry.
The document summarizes Alfred Weber's locational theory model, known as the Weberian model or the least cost approach. The key points are:
1. The Weberian model explains the optimal location of industrial facilities using the locational triangle. Transportation is the most important element of the model.
2. Solving the Weber model involves three stages - finding the least transport cost location, adjusting for labor costs, and adjusting further for agglomeration economies.
3. Transportation cost is the primary factor in determining optimal location, according to the model. Labor costs and agglomeration economies are secondary adjustment factors.
Kluckhohn and Strodtbeck developed a model for analyzing and comparing cultures based on their underlying values and orientations. The model identifies six key dimensions along which cultures vary: humanity's relationship with nature, concepts of time, views of human activity, social relationships, basic human nature, and orientation towards space. These dimensions provide a framework for understanding differences in how cultures approach issues like social organization, time orientation, and human nature. While useful, the model is limited by its vagueness, difficulty of measurement, and lack of direct focus on business and management issues.
The document discusses Kluckhohn and Strodtbeck's model of cross-cultural value orientations, which identifies six basic dimensions that cultures vary along: relationship to nature, time orientation, activity orientation, relationships among people, human nature, and space/property. These dimensions influence a culture's values regarding important issues like work, family, and social relations. While insightful, Kluckhohn and Strodtbeck's framework has weaknesses like being vague, difficult to measure, and not directly addressing business and management concerns.
This document outlines a model mediation procedure and agreement for intellectual property disputes in the UK. It provides guidance for conducting a mediation, including procedures for exchanging information, conducting the mediation, reaching and formalizing any settlement agreement, ensuring confidentiality, and allocating costs. Key aspects include having representatives with full authority to settle, preparing concise case summaries and documents to share, maintaining confidentiality of mediation discussions, and jointly sharing mediation fees and expenses.
Trompenaars and Hampden-Turner identified seven cultural dimensions along which cultures can be classified based on their research on business executives. These seven dimensions are universalism versus particularism, communitarianism versus individualism, neutral versus emotional, diffuse versus specific cultures, achievement versus ascription, human-time relationship, and human-nature relationship. Their 1997 book "Riding The Waves of Culture" explores these seven value orientations between cultures.
Toyota built a new car factory in Burnaston, UK, creating over 3000 jobs. Burnaston was chosen as the site because it was a large, flat, greenfield site next to major roads with access to suppliers and a local workforce. The new factory had positive economic effects, including jobs, increased spending, and supplier companies moving to the area. However, it also increased traffic and destroyed greenfield land. While most benefits were local, there was a potential downside if it reduced sales or jobs elsewhere.
The International legal environment of businessStudsPlanet.com
The document discusses the international legal environment of business. It covers topics such as international law and agreements, business structures abroad, and dispute resolution. It also examines the international business environment, risks of international transactions, and origins and sources of international law. International business involves entities from multiple countries and issues around trade, capital, personnel across borders under different legal systems and government policies.
India's textile industry is one of the largest in the world, contributing 14% to industrial production and employing over 35 million people. It is the largest provider of employment after agriculture and earns 27% of India's total foreign exchange through textile exports. The industry has grown significantly since economic liberalization in 1991 and includes cotton, silk, wool, readymade garments, and hand-crafted textiles segments. It faces competition from countries like China but also has opportunities for growth in the domestic market and through trade agreements. The government is taking initiatives to support the industry through skills training programs and new textile parks.
This document discusses key concepts related to documentary sales and international transactions. It defines key terms like documentary sale, negotiability, bills of lading, and documentary draft. It explains the stages of a documentary transaction and how the risks are allocated between buyers and sellers under different trade terms like CIF. The document also summarizes several cases that illustrate how these concepts are applied, such as who is responsible if goods are stolen during transport depending on whether it is an FOB or CIF contract.
This document discusses various leadership roles and responsibilities. It begins by listing numerous roles of strategic leaders such as visionary, builder, acquirer, implementer, integrator, and motivator. It then provides more details on the roles of staying informed, promoting culture, adapting to change, exercising ethics, and making corrections. The document also discusses developing new capabilities through senior management intervention and cooperation. It outlines actions demonstrating social responsibility like family policies and community involvement. Finally, it discusses leading corrective adjustments through both reactive and proactive changes to strategy and alignment of activities.
The document provides information on various credit insurance products offered by ECGC (Export Credit Guarantee Corporation of India) to exporters and banks. It describes short-term and medium/long-term export credit insurance that protects against payment risks and lending risks. It also outlines domestic credit insurance, overseas investment insurance, and exchange fluctuation covers. Statistics on ECGC's growth over time and profiles of specific insurance policies are included.
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Intl fin mkts chap iii
1. INTERNATIONAL
FINANCIAL
MANAGEMENT
EUN / RESNICK
Third Edition
Chapter Objectives:
This chapter serves to introduce the student to the
institutional framework within which exchange rates are
determined.
This chapter lays the foundation for much of the
discussion throughout the remainder of the text, thus it
deserves your careful attention.
4Chapter Four
The Market for
Foreign Exchange
www.StudsPlanet.com
2. Chapter Outline
• Function and Structure of the FOREX
Market
• The Spot Market
• The Forward Market
www.StudsPlanet.com
3. Chapter Outline
• Function and Structure of the FOREX
Market
– FX Market Participants
– Correspondent Banking Relationships
• The Spot Market
• The Forward Market
www.StudsPlanet.com
4. Chapter Outline
• Function and Structure of the FOREX
Market
• The Spot Market
– Spot Rate Quotations
– The Bid-Ask Spread
– Spot FX Trading
– Cross Exchange Rate Quotations
– Triangular Arbitrage
– Spot Foreign Exchange Market Microstructurewww.StudsPlanet.com
5. Chapter Outline
• Function and Structure of the FOREX
Market
• The Spot Market
• The Forward Market
– Forward Rate Quotations
– Long and Short Forward Positions
– Forward Cross-Exchange Rates
– Swap Transactions
– Forward Premium
www.StudsPlanet.com
6. The Function and Structure of the
FOREX Market
• FOREX Market Participants
• Correspondent Banking Relationships
www.StudsPlanet.com
7. FOREX Market Participants
• The FOREX market is a two-tiered market:
– Interbank Market (Wholesale)
• About 700 banks worldwide stand ready to make a
market in Foreign exchange.
• Nonbank dealers account for about 20% of the
market.
• There are FX brokers who match buy and sell orders
but do not carry inventory and FX specialists.
– Client Market (Retail)
• Market participants include international
banks, their customers, nonbank dealers,www.StudsPlanet.com
8. Correspondent Banking
Relationships
• Large commercial banks maintain demand deposit
accounts with one another which facilitates the
efficient functioning of the forex market.
• International commercial banks communicate with
one another with:
– SWIFT: The Society for Worldwide Interbank Financial
Telecommunications.
– CHIPS: Clearing House Interbank Payments System
– ECHO Exchange Clearing House Limited, the first
global clearinghouse for settling interbank FOREX
transactions. www.StudsPlanet.com
9. The Spot Market
• Spot Rate Quotations
• The Bid-Ask Spread
• Spot FX trading
• Cross Rates
www.StudsPlanet.com
10. Spot Rate Quotations
• Direct quotation
– the U.S. dollar equivalent
– e.g. “a Japanese Yen is worth about a penny”
• Indirect Quotation
– the price of a U.S. dollar in the foreign currency
– e.g. “you get 100 yen to the dollar”
• See the insert card from your textbook.
www.StudsPlanet.com
11. Spot Rate Quotations
The direct
quote for
British pound
is:
£1 = $1.5627
Country
USD
equiv
Friday
USD equiv
Thursday
Currency per
USD Friday
Currency per
USD Thursday
Argentina (Peso) 0.3309 0.3292 3.0221 3.0377
Australia
(Dollar) 0.5906 0.5934 1.6932 1.6852
Brazil (Real) 0.2939 0.2879 3.4025 3.4734
Britain (Pound) 1.5627 1.566 0.6399 0.6386
1 Month Forward 1.5596 1.5629 0.6412 0.6398
3 Months
Forward 1.5535 1.5568 0.6437 0.6423
6 Months
Forward 1.5445 1.5477 0.6475 0.6461
Canada (Dollar) 0.6692 0.6751 1.4943 1.4813
1 Month Forward 0.6681 0.6741 1.4968 1.4835
3 Months
Forward 0.6658 0.6717 1.502 1.4888
www.StudsPlanet.com
12. Spot Rate Quotations
The indirect
quote for
British
pound is:
£.6399 = $1
1.49751.51060.66780.6626 Months Forward
1.48881.5020.67170.66583 Months Forward
1.48351.49680.67410.66811 Month Forward
1.48131.49430.67510.6692Canada (Dollar)
0.64610.64751.54771.54456 Months Forward
0.64230.64371.55681.55353 Months Forward
0.63980.64121.56291.55961 Month Forward
0.63860.63991.5661.5627Britain (Pound)
3.47343.40250.28790.2939Brazil (Real)
1.68521.69320.59340.5906Australia (Dollar)
3.03773.02210.32920.3309Argentina (Peso)
Currency per
USD Thursday
Currency per USD
Friday
USD equiv
Thursday
USD equiv
FridayCountry
www.StudsPlanet.com
13. Spot Rate Quotations
Note that
the direct
quote is the
reciprocal
of the
indirect
quote:
6399.
1
5627.1 =
1.49751.51060.66780.6626 Months Forward
1.48881.5020.67170.66583 Months Forward
1.48351.49680.67410.66811 Month Forward
1.48131.49430.67510.6692Canada (Dollar)
0.64610.64751.54771.54456 Months Forward
0.64230.64371.55681.55353 Months Forward
0.63980.64121.56291.55961 Month Forward
0.63860.63991.5661.5627Britain (Pound)
3.47343.40250.28790.2939Brazil (Real)
1.68521.69320.59340.5906Australia (Dollar)
3.03773.02210.32920.3309Argentina (Peso)
Currency per
USD Thursday
Currency per USD
Friday
USD equiv
Thursday
USD equiv
FridayCountry
www.StudsPlanet.com
14. The Bid-Ask Spread
• The bid price is the price a dealer is willing
to pay you for something.
• The ask price is the amount the dealer wants
you to pay for the thing.
• The bid-ask spread is the difference
between the bid and ask prices.
www.StudsPlanet.com
15. Spot FX trading
• In the interbank market, the standard size
trade is about U.S. $10 million.
• A bank trading room is a noisy, active
place.
• The stakes are high.
• The “long term” is about 10 minutes.
www.StudsPlanet.com
16. Cross Rates
• Suppose that S($/€) = .50
– i.e. $1 = 2 €
• and that S(¥/€) = 50
– i.e. €1 = ¥50
• What must the $/¥ cross rate be?
,
¥
€
€
$
¥
$
since ×=
¥100$1or.01¥)/($
¥100
1$
¥50
1€
2€
1$
==⇒=× S
www.StudsPlanet.com
20. Triangular Arbitrage
Sell $100,000 for £ at S(£/$) = 1.50
receive £150,000
Sell our £ 150,000 for ¥ at S(¥/£) = 85
receive ¥12,750,000
Sell ¥ 12,750,000 for $ at S(¥/$) = 120
receive $106,250
profit per round trip = $ 106,250- $100,000 = $6,250
www.StudsPlanet.com
21. Spot Foreign Exchange
Microstructure
• Market Microstructure refers to the
mechanics of how a marketplace operates.
• Bid-Ask spreads in the spot FX market:
– increase with FX exchange rate volatility and
– decrease with dealer competition.
• Private information is an important
determinant of spot exchange rates.
www.StudsPlanet.com
22. The Forward Market
• Forward Rate Quotations
• Long and Short Forward Positions
• Forward Cross Exchange Rates
• Swap Transactions
• Forward Premium
www.StudsPlanet.com
23. The Forward Market
• A forward contract is an agreement to buy
or sell an asset in the future at prices agreed
upon today.
• If you have ever had to order an out-of-
stock textbook, then you have entered into a
forward contract.
www.StudsPlanet.com
24. Forward Rate Quotations
• The forward market for FOREX involves
agreements to buy and sell foreign
currencies in the future at prices agreed
upon today.
• Bank quotes for 1, 3, 6, 9, and 12 month
maturities are readily available for forward
contracts.
• Longer-term swaps are available.
www.StudsPlanet.com
25. Forward Rate Quotations
• Consider the example from above:
for Japanese yen, the spot rate is
$1.5627 = £1.00
While the 180-day forward rate is
$1.5445 = £1.00
• What’s up with that?
www.StudsPlanet.com
26. Spot Rate Quotations
Clearly the
market
participants
expect that
the pound
will be
worth less
in dollars in
six months.
1.49751.51060.66780.6626 Months Forward
1.48881.5020.67170.66583 Months Forward
1.48351.49680.67410.66811 Month Forward
1.48131.49430.67510.6692Canada (Dollar)
0.64610.64751.54771.54456 Months Forward
0.64230.64371.55681.55353 Months Forward
0.63980.64121.56291.55961 Month Forward
0.63860.63991.5661.5627Britain (Pound)
3.47343.40250.28790.2939Brazil (Real)
1.68521.69320.59340.5906Australia (Dollar)
3.03773.02210.32920.3309Argentina (Peso)
Currency per
USD Thursday
Currency per USD
Friday
USD equiv
Thursday
USD equiv
FridayCountry
www.StudsPlanet.com
27. Long and Short Forward
Positions
• If you have agreed to sell anything (spot or
forward), you are “short”.
• If you have agreed to buy anything (forward
or spot), you are “long”.
• If you have agreed to sell forex forward,
you are short.
• If you have agreed to buy forex forward,
you are long.
www.StudsPlanet.com
28. Payoff Profiles
0
S180($/¥)
F180($/¥) = .009524
Short positionloss
profit
If you agree to sell anything in the
future at a set price and the spot
price later falls then you gain.
If you agree to sell anything in the
future at a set price and the spot
price later rises then you lose.www.StudsPlanet.com
29. Payoff Profiles
loss
0 S180(¥/$)
F180(¥/$) = 105
-F180(¥/$)
profit
Whether the
payoff profile
slopes up or
down depends
upon whether
you use the
direct or indirect
quote:
F180(¥/$) = 105 or
F180($/¥) = .
short position
www.StudsPlanet.com
30. Payoff Profiles
loss
0
S180(¥/$)
F180(¥/$) = 105
-F180(¥/$)
When the short entered into this forward contract,
he agreed to sell ¥ in 180 days at F180(¥/$) = 105
profit
short position
www.StudsPlanet.com
31. Payoff Profiles
loss
0
S180(¥/$)
F180(¥/$) = 105
-F180(¥/$)
120
If, in 180 days, S180(¥/$) = 120, the short will
make a profit by buying ¥ at S180(¥/$) = 120 and
delivering ¥ at F180(¥/$) = 105.
15¥
profit
short position
www.StudsPlanet.com
32. Payoff Profiles
loss
0
S180(¥/$)
F180(¥/$) = 105
Long position-F180(¥/$)
F180(¥/$) short position
profit
Since this is a zero-sum game,
the long position payoff is the
opposite of the short.
www.StudsPlanet.com
33. Payoff Profiles
loss
0
S180(¥/$)
F180(¥/$) = 105
Long position
-F180(¥/$)
profit
The long in this forward contract agreed to BUY
¥ in 180 days at F180(¥/$) = 105
If, in 180 days, S180(¥/$) = 120, the long will
lose by having to buy ¥ at S180(¥/$) = 120
and delivering ¥ at F180(¥/$) = 105.
120
–15¥
www.StudsPlanet.com
34. Forward Cross Exchange Rates
• It’s just an “delayed” example of the spot
cross rate discussed above.
• In generic terms
)/($
)/($
)/(
and
)/($
)/($
)/(
kF
jF
jkF
jF
kF
kjF
N
N
N
N
N
N
=
=
www.StudsPlanet.com
35. SWAPS
• A swap is an agreement to provide a
counterparty with something he wants in
exchange for something that you want.
• Swap transactions account for
approximately 56 percent of interbank FX
trading, whereas outright trades are 11
percent.
www.StudsPlanet.com
36. Forward Premium
• It’s just the interest rate differential implied
by forward premium or discount.
• For example, suppose the € is appreciating
from S($/€) = .5235 to F180($/€) = .5307
• The forward premium is given by:
01375.
5235.
5235.5307.
180
360
€)/($
€)/($€)/($180
$,€180 =
−
=×
−
=
S
SF
f v
www.StudsPlanet.com
37. Currency Market
• Where currencies are bought and sold
against each other.
• OTC market.
• Quite decentralized and operates
through an electronic network that
links various market participants.
www.StudsPlanet.com
39. Global Currency Markets
• A 24 hours market
• Spreads geographically across all the time
zones
• No physical presence
• Through dealing rooms of commercial banks
• Sleek, being screen based
• Deep, highly liquid, efficient and “fairest”
• Highly volatile
• High potential for profits/losswww.StudsPlanet.com
43. Indian Currency Market
Consists of
• Authorized Dealers
• Full-fledged Money Changers
• Restricted Money Changers
www.StudsPlanet.com
44. Dealing Room
• A centralised establishment, usually
of a commercial bank, which is
willing to make/offer a two way
dealing price for different currencies
at all times even when they may not
wish to deal, but all during
prescribed business hours.
www.StudsPlanet.com
46. Currency Dealers
• Primary price makers or professional
dealers make a two-way market to
each other and to their clients
• Foreign currency brokers act as
middlemen between two market
makers.
• Corporations usually are price
takers. www.StudsPlanet.com
47. Exchange Quotes
• Direct Quote/Home Currency Quote:
– Unit of foreign currency is kept constant against the
amount of home currency to be exchanged for it.
Example: US $ 1 = INR 43.60
• Indirect Quote/Foreign Currency Quote:
– Indicates the number of units of foreign currency which
will be exchanged for a fixed number of home currency
units.
Example: INR 100 = US $ 2.16
www.StudsPlanet.com
48. Exchange Rates
Exchange of currencies on the very date of
deal.
Cash/Ready
Rate
Exchange of currencies on the next working
day i.e. tomorrow
Tom Rate
Exchange of currencies on the second
working day after the date of deal.
Spot Rate
Exchange of currencies after a period of spot
date.
Forward Rate
Simultaneous purchase and sale of identical
amounts of a currency for different value
dates.
Swap
www.StudsPlanet.com
49. Spot Quotes
• USD/CHF SPOT: 1.4575/1.4580
Bid Offer
• Bank will buy 1 USD and give CHF 1.4575
• Bank will sell 1 USD and want to be paid
CHF 1.4580.
• Shortened to 1.4575/80 or even 75/80
between dealers. “1.45” is the “big figure”www.StudsPlanet.com
50. Spot Rates
• A spot GBP/USD deal on Friday Dec 8 : Value date
Tuesday Dec 11
• If Dec 11 holiday in NY/London, value date 12 Dec.
• A 2-month forward deal USD/CHF on Monday Dec
11: Value date Feb 13 2001. If holiday in NY/Zurich,
Feb 14.
• A 2-month forward USD/JPY on Dec 26. Value date
Feb 28. If holiday Tokyo/NY, push forward? NO.
Pushing forward must not carry to next calendar
month. Push back to Feb 27.
• Spot deals in some currency pairs such as US dollar-
Canadian dollar settled in one business day
www.StudsPlanet.com
51. Spot Rates
• Base Currency/Quoted Currency Bid Rate/Offer
Rate
– USD/CHF : USD base, CHF quoted
– GBP/USD : GBP base, USD quoted
• Most currencies quoted with USD as base.
Exceptions are EUR, GBP, AUD, NZD
• Quotation given as no. of units of quoted
currency per unit of base currency, bid rate/offer
rate.
• Bid rate applies to market maker buying base
currency. Offer rate applies to market maker
selling base currency.www.StudsPlanet.com
52. Interbank Spot Dealing
• Monday September 21, 10.45 am
BANK A: "Bank A calling. DLR-FRF 25
please.
• BANK B: "Forty -Fifty two”
(Bank B is specifying a two-way price.
Knowing that the caller is also a forex
dealer, the dealer in Bank B quotes only the
last two decimals of the full quotation. For
instance the full quotation might be
4.1540/4.1552.)
• BANK A: “Mine”www.StudsPlanet.com
53. Forward Rates
Spot rate interest rate differential forward period
100 × No. of days in the year (usually 360)
× ×
www.StudsPlanet.com
54. Forward Rates
Where,
F = Forward exchange rate
S = Spot exchange rate
iT = Interest rate in the country of the terms
currency
ic = Interest rate in the country of the
commodity
currency
t = Time period
( )
( )
1
1
t
T
t
c
S i
F
i
+
=
+
www.StudsPlanet.com
56. Euro Markets
• International money and capital markets on
which currencies held outside their countries of
origin are traded
• Dollar is the predominant currency
• Tokyo, Singapore, London, Frankfurt,
Bahamas, Bermuda, Cayman Islands, Panama
• Euro money market
• Euro credit market
• Euro capital market
www.StudsPlanet.com