chap4(14th ed.).pptVIP

CHAPTER 4 Forward Exchange and International Financial Investment This chapter examines future exchanges of moneys and the exposure to the risks of uncertain future exchange rates. It discusses how forward foreign exchange contracts (远期外汇合同) can be used to reduce the risk exposure or to speculate(投机) on future exchange rates. Framework of chapter 4 Hedging and speculating by forward foreign exchange 远期外汇的套期保值和投机 International investment with cover 抛补性国际投资 International investment without cover 非抛补性国际投资 Exchange Rate Risk 汇率风险 A person (or an organization) is exposed to exchange rate risk if the value of his income or wealth or net worth changes when exchange rates change unpredictably in the future. p45 汇率风险：组织、经济实体或个人，因其在国际经济、贸易金融等活动中，以外币计价的资产或负债因外汇汇率的波动而可能受的损失或收益。 Cont’d e.g. Taking a vacation abroad. e.g. Financial investment abroad. For instance, an investment in Mexican stocks. Cont’d 套期保值 Hedging is taking an action to reduce the exposure to exchange rate risk. ? 投机 Speculation is taking an action that increases your exposure to exchange rate risk, usually to try to profit from your belief about what future exchange rates will be. The market basics of forward foreign exchange Forward foreign exchange contract is an agreement to exchange one currency for another on some date in the future at price set now. 远期外汇合同是指在约定未来某一日期以一定的外汇汇率（远期汇率）买进或卖出一定金额外币的合同。 Common dates for future exchange are 30, 90, and 180 days forward (one, three, and six months). Cont’d e.g. to buy ? 100,000 of 90-days forward sterling at $1.9668/ ?,you sign agreement today with your bank that 90 days from now you will deliver $196,680 in dollar bank deposits and receive ?100,000 in pound bank deposits. Please note: Do not confuse the forward rate with the future spot rate. Hedging using forward foreign exchange 远期外汇合同用于套期保值 Hedging involves acquiring an asset in a foreign currency to offset a net liability position alrea