lecture_2.pdf - EF 4471 International Finance Lecture 2 Exchange Rates and the Foreign Exchange Market An Asset Approach Dr Hanwei HUANG City University

lecture_2.pdf - EF 4471 International Finance Lecture 2...

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EF 4471 International Finance Lecture 2: Exchange Rates and the Foreign Exchange Market: An Asset Approach Dr. Hanwei HUANG City University of Hong Kong 1
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Motivation: the price of an Apple Watch Price in USD Price in local currency ?? Canada US$490 C$649 ?? United States US$499 US$499 ?? Australia US$509 A$749 ?? Hong Kong US$511 HK$3,999 ?? Japan US$522 ¥56,800 ?? South Korea US$531 ₩619,000 ?? Taiwan US$541 NT$16,500 ?? UAE US$544 1,999 د . إ ?? Singapore US$550 S$749 ?? Switzerland US$555 CHF549 ?? Spain US$584 € 529 ?? Austria US$584 € 529 ?? France US$584 € 529 ?? Germany US$584 € 529 ?? Thailand US$592 ฿ 17,900 ?? Finland US$595 € 539 ?? Norway US$604 5490 NOK ?? Denmark US$605 4099 DKK ?? Poland US$606 2 349 ?? Sweden US$621 5 995 SEK ?? Mexico US$624 MEX$11,999 ?? United Kingdom US$643 £499 ?? Italy US$782 € 709 ?? Brazil US$1,191 R$4999
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