上海交通大学：《跨国公司财务管理》教学资源_课件PPT_ICF PPT-Chp 5 Foreign Exchange Market

International Corporate Finance The Foreign Exchange Market and Derivatives Xin Chen Visiting Associate Professor Aarhus School of Business

1 International Corporate Finance The Foreign Exchange Market and Derivatives Xin Chen Visiting Associate Professor Aarhus School of Business

Today's Market Currency Pair Price Change %Change Day Range 52 Week Range EUR/USD 1.4785 -0.001- -0.07%1.4771-1.4821 1.2334-1.4793 USD/JPY 91.275 0.11 0.12%90.4850-91.405087.11-108.05 GBP/USD 1.6434 0.007 0.43%1.6336-1.6446 1.3509-1.8519 AUD/USD 0.874 0.0003 0.03%0.8735-0.8774 0.6011-0.8775

Today’s Market Currency Pair Price Change %Change Day Range 52 Week Range EUR/USD 1.4785 -0.001 -0.07% 1.4771 - 1.4821 1.2334 - 1.4793 USD/JPY 91.275 0.11 0.12% 90.4850 - 91.4050 87.11 - 108.05 GBP/USD 1.6434 0.007 0.43% 1.6336 - 1.6446 1.3509 - 1.8519 AUD/USD 0.874 0.0003 0.03% 0.8735 - 0.8774 0.6011 - 0.8775

DKK/USD Recent 120 days DKK 5.81788 5.6513 5.48472 5.31813 5.15155 4.98497 May 6 Jun 4 Jul 3 Aug 3 Sep 1 0 5 0

DKK/USD Recent 120 days 1 2 0 d a y s la te s t ( S ep 2 2 ) 5 .0 3 5 3 2 low e s t ( S ep 2 2 ) 5 .0 3 5 3 2 h i g h e s t (A p r2 1 ) 5 .7 6 0 2 8

The Foreign Exchange Market The foreign exchange (FX)market is where currency trading takes place. The FX market is the largest and most liquid financial market in the world. It is a 24-hour market

The Foreign Exchange Market The foreign exchange (FX) market is where currency trading takes place. The FX market is the largest and most liquid financial market in the world. It is a 24-hour market

The.Foreign Exchange Market Foreign exchange means the money of a foreign country;that is,foreign currency bank balances,banknotes,checks and drafts. A foreign exchange transaction is an agreement between a buyer and a seller that a fixed amount of one currency will be delivered for some other currency at a specified date

The Foreign Exchange Market Foreign exchange means the money of a foreign country; that is, foreign currency bank balances, banknotes, checks and drafts. A foreign exchange transaction is an agreement between a buyer and a seller that a fixed amount of one currency will be delivered for some other currency at a specified date

Geography The foreign exchange market spans the globe,with prices moving and currencies trading somewhere every hour of every business day. Major world trading starts each morning in Sydney and Tokyo. Then moves west to Hong Kong and Singapore. Continuing to Europe and finishing on the West Coast of the US

Geography The foreign exchange market spans the globe, with prices moving and currencies trading somewhere every hour of every business day. Major world trading starts each morning in Sydney and Tokyo. Then moves west to Hong Kong and Singapore. Continuing to Europe and finishing on the West Coast of the US

Exhibit 6.1 Measuring Foreign Exchange Market Activity:Average Electronic Conversions Per Hour 25,000 20,000 15,000 10,000 5,000 Greenwich Mean Time 0 ■■■■ 123456789101112131415161718192021222324 10A.M. Europe Americas Afternoon Tokyo in Tokyo Opening Open in Americas Opens Lunch Asia London 6P.M. in Tokyo Closing Closing in NY Source:Federal Reserve Bank of New York,"The Foreign Exchange Market in the United States,"2001,http://www.ny.frb.org

Exhibit 6.1 Measuring Foreign Exchange Market Activity: Average Electronic Conversions Per Hour

Functions of the Foreign Exchange Market transfer purchasing power between countries; --International buying/selling of goods, services,and assets. obtain or provide credit for international trade transactions,and minimize exposure to the risks of exchange rate changes. --The FX market provides instruments utilized in hedging

Functions of the Foreign Exchange Market transfer purchasing power between countries; --International buying/selling of goods, services, and assets. obtain or provide credit for international trade transactions, and minimize exposure to the risks of exchange rate changes. --The FX market provides instruments utilized in hedging

Market Level The foreign exchange market consists of two tiers: 的 the interbank or wholesale market (multiples of $1MM US or equivalent in transaction size), and the client or retail market (specific,smaller amounts)

Market Level The foreign exchange market consists of two tiers: the interbank or wholesale market (multiples of $1MM US or equivalent in transaction size), and the client or retail market (specific, smaller amounts)

Market Participants Five broad categories of participants operate within these two tiers; bank and nonbank foreign exchange dealers, individuals and firms conducting international business, speculators, arbitragers, central banks and treasuries

Market Participants Five broad categories of participants operate within these two tiers; bank and nonbank foreign exchange dealers, individuals and firms conducting international business, speculators, arbitragers, central banks and treasuries