国际金融第四章答案.doc

Answers to Chapter Four 1. Given that the exchange rate is expressed as dollars to euros, we treat the dollar as the domestic currency. Note also that interest rates are quoted on an annual basis even though the maturity period is only one month. In this problem we divide the interest rates by 12 to put them on a one-month basis. a. The interest rate differential, therefore, is (1.75%/12 - 3.25%/12) = -0.125%. The forward premium/discount, expressed as a percentage, is calculated as: ((F-S)/S)?100 = ((1.089 – 1.072)/1.072)?100=1.5858% b. Transaction costs are shown in the figure above by the dashed lines that interest the horizontal axis at values of -1.00 and 1.00. c. The positive value indicates that the euro is selling at a premium. In addition, the interest rate differential favors the euro-denominated instrument. Hence, a saver shift funds to euro-denominated instruments. 2. Using the provided information: (1.75/12) – (3.25/12) [(1.089 - 1.072/1.072)]?100 -0.125% 1.5858%. 3. The four markets are graphed below. An explanation follows. Graph 1, the spot market for the euro. 人们在即期市场将美元等货币兑换成 欧元，以期保值和升值。所以对欧元 需求上升。 Graph 2, the forward market for the euro. 人们将在即期市场兑换的欧元又在远期 市场卖出，就形成了欧元的供给增加。 Graph 4, U.S. loanable funds Graph 5, Euro loanable funds In graph 1, the demand for the euro rises as international savers shift funds into euro-denominated instruments. In graph 2, the supply of euros increases in the forward market. (Consider a U.S. saver that moves funds into a euro-denominated instrument. They would desire to sell the euro forward so they may convert euro-denominated proceeds at the time of maturity into their dollar equivalent.) Graph 3 illustrates a decre