财务管理-社团的财政讲义12英文版.pptVIP

International Finance Today Capital Budgeting (international style) Financing (international style) Topics Exchange rates Currency risk Managing Currency Risk Capital Budgeting w/ currency risk Financing w/currency risk Exchange Rates Spot Rate The price of a currency for immediate delivery (i.e. today抯 exchange rate) Forward Rate The price of a currency on a specified future date (i.e. a forward contract in which the exercise price is the exchange rate) Futures - Same as forward (w/secondary markets) Options - on exchange rates Future Ks Exchange Rates Example German mark spot price is M1.4457 per $1 German mark 6 mt forward price is M1.4282 per $1 The Mark is selling at a Forward Premium The Dollar is selling at a Forward Discount This means that the market expects the dollar to get weaker, relative to the mark Example (premium? discount?) The Japanese Yen spot price is 101.18 per $1 The Japanese 6mt fwd price is 103.52 per $1 Exchange Rates Example What is the Mark premium (annualized)? Exchange Rates Example What is the Mark premium (annualized)? Mark Premium = 2 x ( 1.4457 - 1.4282) = 2.45% 1.4282 Dollar Discount = 2.45% Exchange Rates Example What is the Mark premium (annualized)? Mark Premium = 2 x ( 1.4457 - 1.4282) = 2.45% 1.4282 Dollar Discount = 2.45% Example What is the Yen discount (annualized)? Exchange Rates Example What is the Mark premium (annualized)? Mark Premium = 2 x ( 1.4457 - 1.4282) = 2.45% 1.4282 Dollar Discount = 2.45% Example What is the Yen discount (annualized)? Yen Discount = 2 x ( 103.52 - 101.18) = 4.26% 103.52 Dollar Premium = 4.26% Exchange Rates 1) Interest Rate Parity Theory 1 + rf = Ff/$ 1 + r$ Sf/$ The difference between the risk free interest rates in two different c