北大金融学课件(英文版)第3章(4课时).pptVIP

3-* Changes in Exchange Rates Appreciation vs. depreciation under floating exchange rate regime Revaluation vs. devaluation under fixed exchange rate regime. Case 2 In April 21, 2008, Rmb/Dollar=7.00 In April 22, 2008, Rmb/Dollar=6.89 Case 1 In 1994, Rmb/Dollar=5.70 went to: Rmb/Dollar=8.30 √ 3-* Can these happen? $1.7/￡ in New York while $1.6/￡ in London $1.7/￡, SFr3/Pound $0.50/SFr exist at a point in time? √ 3-* Arbitrage in the spot market Arbitrage is a process of buying and selling to make a (nearly) riskless pure profit, w