Foreign Exchange Risk Willamette University外汇风险威拉姆特大学.pptVIP

Fred Thompson Foreign Exchange Markets Objectives: to understand The organization of the Foreign Exchange Market (FEM) and the distinction between spot and forward markets How to calculate forward premiums and discounts How forward markets can be used to reduce exchange risk The major participants the FEM and their motives Organization of FEM Interbank market (95% of transactions, 20 major banks) Spot market [40%] Forward market [10%] Swaps [50%] Participants Brokers Arbitrageurs Traders Hedgers Speculators Foreign Exchange Risk Foreign Exchange Risk Foreign exchange risk is the risk that the