SILCLecture3 含套利计算例子 修改.pptVIP

Copyright ? 2009 Pearson Addison-Wesley. All rights reserved. Slides prepared by Thomas Bishop Copyright ? 2009 Pearson Addison-Wesley. All rights reserved. Chapter 13 Exchange Rates and the Foreign Exchange Market: An Asset Approach Copyright ? 2009 Pearson Addison-Wesley. All rights reserved. 13-* Preview The basics of exchange rates Exchange rates and the prices of goods The foreign exchange markets The demand of currency and other assets A model of foreign exchange markets role of interest rates on currency deposits role of expectations of exchange rates Copyright ? 2009 Pearson Addison-Wesley. All rights reserved. 13-* Definitions of Exchange Rates Exchange rates are quoted as foreign currency per unit of domestic currency or domestic currency per unit of foreign currency. How much can be exchanged for one dollar? ￥102/$1 How much can be exchanged for one yen? $0.0098/￥1 Exchange rates allow us to denominate the cost or price of a good or service in a common currency. How much does a Honda cost? ￥3,000,000 Or, ￥3,000,000 x $0.0098/￥1 = $29,400 Copyright ? 2009 Pearson Addison-Wesley. All rights reserved. 13-* Depreciation and Appreciation Depreciation is a decrease in the value of a currency relative to another currency. A depreciated currency is less valuable (less expensive) and therefore can be exchanged for (can buy) a smaller amount of foreign currency. $1/€1 → $1.20/€1 means that the dollar has depreciated relative to the euro. It now takes $1.20 to buy one euro, so that the dollar is less valuable. The euro has appreciated relative to the dollar: it is now more valuable. Copyright ? 2009 Pearson Addison-Wesley. All rights reserved. 13-* Depreciation and Appreciation (cont.) Appreciation is an increase in the value of a currency relative to another currency. An appreciated currency is more valuable (more expensive) and therefore can be exchanged for (can buy) a larger amount of foreign currency. $1/€1 → $0.90/€1 means that the dollar has appreciated r