Genevieve Andre de la Porte
Homework due 04/29/2013
Part 2. Homework
Case 2. Laker Airways Crashes and Burns
The crash of Sir Freddie Lakers Skytrain had little to do with failure of
its navigational equipment or its landing gear; indeed, it
Fisher Effect Notes
The International Fisher Effect
Link differentials in nominal interest rates and exchange rate.
This relationship follows from PPP and Fisher Effect.
Currencies with low interest rates are expected to appreciate relative to currencies
Emphasis in Finance
Requirements (6 credits)
Intermediate Financial Management
Prof. B. Corgnet
Feb 12th, 2016
1) How would you define a currency war? How can the Federal Reserve or the Bank of Japan
affect the value of the U.S Dollar/Yen exchange rate?
After reading the articles relating to t
Prof. B. Corgnet
March 1st, 2016
Assignment 4 | Law of One Price and Arbitrage
Q) Consider a product that you usually consume which is both available at
www.amazon.com and at www.amazon.co.uk. Now, convert the price of your produ
Assignment 3: Central banks and exchange rates
Part 1. (in-class) Teamwork
Due Tuesday February 24th
a) Do you think the European Central Bank and the Federal Reserve have
similar objectives? Why? Why not? Hint: Link for the European Central
Assignment 7: Currency Options
Part 1. Boeing Hedging Yen Exposure
a) Draw the payoff profile for the Yen call options purchased by Boeing.
b) Considering that Boeing has bought the Yen Calls on the UCOM market, what would
be the actual cost (in US dollar
Assignment 6 (The Foreign Exchange Market)
PART 1 Teamwork
a) Provide both the Bid (Buying price) and the Ask (Selling price) for each currency pair.
The currency pair CHF/JPY represents the number of Yens per Swiss Francs.
The currency pair EUR/JPY repre
Assignment 8: Swaps, Disney Case Swaps
1. What is the nature of Disneys yen exposure and what alternative hedging
techniques could the company use? Which hedging options are available?
Disney has three available methods to translate their Yen expo
Assignment 4. Law of One Price and Arbitrage
Question 1. Law of One Price with standard goods.
Can you identify any opportunity for arbitrage? Does the law of one price hold for your
IPAD with Retina Display 4th Generation, 16GB, $369.99
FIN 410 Midterm Material
Quantitative Easing and Yields in the Eurozone
1. Bought government bonds in Germany, Italy, France, and Spain
2. If bond is bought , prices of bonds go up and yields go down
3. Interest Rate(r)= Economic Growth (X) + Inflation (i
Assignment 9: Measuring Economic Exposure
Part 2. Homework
Case 1. Porsche Revs Up Its Results
1. Why does Porsche face more economic exposure than Mercedes or BMW?
Porsche faces more economic exposure than Mercedes and BMW due to the
Assignment 5 (International Parity Conditions)
The Brazilian Real depreciation of 40% can be described using the purchasing
power parity (PPP).
The PPP equation is:
S= exchange rate of currency 1 to currency 2
P1= Cost of Good x in curre
Homework Assignment #2
PART 1 CURRENCY WARS
1) How would you define a currency war? How can the Federal Reserve or the Bank
of Japan affect the value of the US Dollar/Yen exchange rate?
A currency war is a international competition between coun
Balance of Payments
Question 1. Do you agree with the following statement? Why? Why not?
The current account deficit of the U.S. is explained by the strength of the dollar with respect to
Homework #2 FIN 410 (Due in Class October 5)
1. For each of the following six scenarios, state whether the value of the dollar will appreciate,
depreciate, or remain the same relative to the Japanese yen (according to the theory you learned in class
Country Risk Analysis
September 26, 2016
Schedule for Today
Questions/Upcoming Schedule/HW 2 posted (upload
Finish up with determination of exchange rate
Exam will cover through this week
1. _ are a category of multinationals that seek out and invest in lower cost
production sites overseas.
a) Cost minimizers
b) Market seekers
c) Raw-material seekers
d) High tech firms
2. Which of the following is generally a licensing rather that an expor
Globalization & Overseas Expansion
As the company expanded abroad, the portion of its profits booked in low-tax countries
such as Ireland and Singapore grew far faster. From 1996 through 1998, its profits and
revenue in the United States were in sync 73 p
Index Level :
SOUTH AFRICA Standard (Large+Mid Cap)
USA Standard (Large+Mid .10
Mar 30, 2007
Apr 30, 2007
May 31, 2007
1) General description of the situation in the country
Syria is located in Western Asia with its neighboring countries
being Turkey, Jordan, Lebanon, Israel and Iraq. Arabic is the
official language of Syria. In 1945, Syria became a membe
Rates & Market Notes
Quotes are given in pairs: the first price is the BUY (BID) price and the second price is
the SELL (ASK) price.
Banks do not charge commissions on currency transactions but make money out of BidAsk spreads.
SECTION 1: Intro to International Finance
A company with production and distribution facilities in more than one country
with a parent company located in the home country and at least five or six foreign
Section 3: The Balance of Payments
The Balance of Payments is an accounting statement that summarizes all the
economic transactions (goods, services, investments) between resident of the home
country and residents of all other countries.
Section 4: Determination of Exchange Rates:
Monetary Policy, Central Banks, and Exchange Rates:
Currencies are financial assets, and exchange rate is the relative price of two financial
What matters in not only Money Supply but also expectations o
Section 5: Parity Conditions and International Finance
Law of One Price
Parity conditions: relationship between prices, interest rates and exchange rates.
As a result, The Law of One Price holds: exchange-adjusted prices of identical goods
and financial a
September 14, 2016
Questions from Last time
In Class Examples of Journal Transactions
The Current Account
Records imports and exports of goods,
services, income, and current unilateral
Trade Balance imports and expor