LECTURE 8 Using foreign exchange derivatives国际商务-Dr Robert Read.pptVIP

下载本文档

0
0
约7.17千字
约 21页
2018-04-13 发布于北京
举报
版权申诉

LECTURE 8 Using foreign exchange derivatives国际商务-Dr Robert Read.ppt

1、原创力文档（book118）网站文档一经付费（服务费），不意味着购买了该文档的版权，仅供个人/单位学习、研究之用，不得用于商业用途，未经授权，严禁复制、发行、汇编、翻译或者网络传播等，侵权必究。。
2、本站所有内容均由合作方或网友上传，本站不对文档的完整性、权威性及其观点立场正确性做任何保证或承诺！文档内容仅供研究参考，付费前请自行鉴别。如您付费，意味着您自己接受本站规则且自行承担风险，本站不退款、不进行额外附加服务；查看《如何避免下载的几个坑》。如果您已付费下载过本站文档，您可以点击这里二次下载。
3、如文档侵犯商业秘密、侵犯著作权、侵犯人身权等，请点击“版权申诉”（推荐），也可以打举报电话：400-050-0827(电话支持时间：9:00-18:30)。
4、该文档为VIP文档，如果想要下载，成为VIP会员后，下载免费。
5、成为VIP后，下载本文档将扣除1次下载权益。下载后，不支持退款、换文档。如有疑问请联系我们。
6、成为VIP后，您将拥有八大权益，权益包括：VIP文档下载权益、阅读免打扰、文档格式转换、高级专利检索、专属身份标志、高级客服、多端互通、版权登记。
7、VIP文档为合作方或网友上传，每下载1次，网站将根据用户上传文档的质量评分、类型等，对文档贡献者给予高额补贴、流量扶持。如果你也想贡献VIP文档。上传文档

LECTURE 8 Using foreign exchange derivatives国际商务-Dr Robert Read.ppt

ECON 334:INTERNATIONAL BUSINESS AND FINANCE Lecture 8: Using foreign exchange derivatives DERIVATIVE INSTRUMENTS We have seen how forward contracts can guarantee the price at which a foreign exchange purchase or sale will occur in the future These contracts commit the parties to an exchange of the underlying asset – in this case an amount of foreign (for domestic) currency Futures and options contracts are derivative instruments that are bought and sold on a market exchange. While their value is derived from the underlying asset (eg. foreign exchange) the asset itself is not involved in the transaction QUANTITY AND PRICE RISK IN THE FOREIGN EXCHANGE MARKET We will discuss futures contracts as an alternative to forwards in the classes this week This presentation will focus on foreign exchange options These are especially useful when a firm’s foreign exchange exposure involves quantity risk as well as price risk. Forwards (and futures) can address price (exchange rate) risk But, if a receipt or payment is not in fact realised (an expected export order is not won) we have quantity risk. Options contracts can be helpful here FOREIGN EXCHANGE OPTION CONTRACTS A call option gives the purchaser the right to buy foreign exchange from the writer (seller) of the contract A put option gives the purchaser the right to sell foreign exchange to the writer (seller) of the contract But the purchaser is not obliged to exercise the option in either case OPTION PREMIUMS The purchaser (holder) of a call option will only exercise if the exchange rate (in terms of domestic currency) has risen above the option’s ‘strike’ price The purchaser of a put option will only exercise if the exchange rate is below the strike price Options therefore provide insurance services and carry a premium (price) to reflect the asymmetric risk to the writer These premiums will be related to the exchange rate, but how? Compare the value of a forward sale of $ (F = 50 pence) at maturity: PAYOFFS TO A FORW