PPT-Currency Futures or FX Futures Introduction and Pricing Guide

Michael Taylor FinPricing httpsfinpricingcomdownloadhtml Currency Future A currency future or an FX future is a future contract between two parties to exchange one currency for another at a fixed exchange rate on a fixed future date . Currency Code Currency Name Decimal Places AED United Arab Emirates dirham 2 AFN Afghanistan afghani 2 AMD Armenian dram 2 ANG Netherlands Antillean guilder 2 AOA Angola kwanza 2 ARS Argentine peso 2 AUD Australian dollar 2 AWG Aruban guilder 2 AZN 1.5 – Currency conversions. Students should be able to perform . currency transactions . involving commission.. Simple Currency Conversion. We use an . exchange rate. to find out how much your money is worth in a foreign currency, and vice versa.. International Trade. Foreign Exchange Rates. (AKA FX or . forex. ). What are exchange rates?. The price of a currency in terms of another - the rate . at which one currency can be exchanged for . another (multiply foreign price by exchange rate to calculate). Lesson . 5. Slide . 5. A. What . Does . That. Mean? . Term. Definition . conversion . the exchange of one country or economic unit’s currency for another.. exchange rate . the rate at which the currency of one country may be exchanged for that of another.. Currency Derivatives. Explain how forward contracts are used to hedge based on anticipated exchange rate movements. Describe how currency futures contracts are used to speculate or hedge based on anticipated exchange rate movements. Dr. Wolfgang Richter. 17.05.2017. Impact on a sizable part of Greece (for instance, if all public sector payments were made in a parallel currency).. Fair pricing information for everybody using it, i.e. it has to adequately reflect payment decisions of the users (no speculation bubble).. February 2016. The UWA Futures Observatory opened in November 2015 to provide a focus for the Centre for Education Futures’ Scholarship and Innovation stream. . Its . purpose is to:. Promote . and encourage UWA’s future thinking . Jennie Morse. BA 543. Evening Section. Agenda. Intro. Exchange Rates. Forex. Market. Hedging vs. Arbitrage. Currency Derivatives. Forward Contracts. Futures Contracts. Options. Swaps. Conclusion and Questions. Monsoon vacations aren’t everybody’s cup of tea, but many people find this time of year exhilarating; either that or prices are at their cheapest during the monsoon season while everybody else waits out the storms in their homes! Options on Stock Indices and Currencies. Chapter 15. 1. Fundamentals of Futures and Options Markets, 9th Ed, Ch 15, Copyright © John C. Hull 2016. Index Options. The most popular indices underlying options in the U.S. are. Market Skimming. Market Skimming. High price, Low volumes. Skim the profit from the market. Suitable for products that have short life cycles or which will face competition at some point in the future (e.g. after a patent runs out). Optimum Currency Areas and the European Experience Chapter 21 ECO41 International Economics Udayan Roy The theory of optimum currency areas A few questions Would it be desirable for the whole world to have one currency? Korean economy, U.S. exports comprise a muchlarger share of world exports. Clearly the dominance of the U.S. economyand the decline of the U.K. economy in the twentiethcentury were related to the rise (chapter . 7). The following sections in chapter . 7 . are not . required for the exam:. - . American . option-pricing relationships. European option-pricing relationships. Binomial option-pricing model.