{"product_id":"managing-global-financial-and-foreign-exchange-rate-risk-159-wiley-finance-9780471281153","title":"Managing Global Financial and Foreign Exchange","description":"\u003cb\u003eBook Synopsis\u003c\/b\u003e\u003cbr\u003eManaging Foreign Exchange Risk explains how treasurers can better manage their foreign exchange risk through the use of financial derivative instruments and how to manage their various exposures.\u003cbr\u003e\u003cbr\u003e\u003cb\u003eTable of Contents\u003c\/b\u003e\u003cbr\u003e\u003cp\u003ePreface xv\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Global Markets: Transactions and Risks 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSavings and Loans Problems 2\u003c\/p\u003e \u003cp\u003eAgency Problems 3\u003c\/p\u003e \u003cp\u003eTypes of Markets 5\u003c\/p\u003e \u003cp\u003eTypes of Transactions 7\u003c\/p\u003e \u003cp\u003eTypes of Risks 10\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Balance of Payments Exposure Management 15\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBalance of Payments as a Source and Use of Funds 17\u003c\/p\u003e \u003cp\u003eComponents of Balance of Payments 17\u003c\/p\u003e \u003cp\u003eCurrent Account and Economic Fundamentals 19\u003c\/p\u003e \u003cp\u003eCapital Account, Expectation, and Interest Rate 21\u003c\/p\u003e \u003cp\u003eU.S. Balance of Payments: Recent Evidence 21\u003c\/p\u003e \u003cp\u003eExposure Related to Capital Account 23\u003c\/p\u003e \u003cp\u003eExchange Rate Arrangements, Dollarization, and Peg 28\u003c\/p\u003e \u003cp\u003eManaging Balance of Payment Exposure in the Emerging Market Economies 32\u003c\/p\u003e \u003cp\u003eCase Study: Kairos Capital 33\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Foreign Exchange Rate Dynamics: Managing Exposure 39\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eForeign Exchange Markets 39\u003c\/p\u003e \u003cp\u003eForeign Exchange Transactions 39\u003c\/p\u003e \u003cp\u003eForeign Exchange Market Functions 45\u003c\/p\u003e \u003cp\u003eForeign Exchange Quotations 45\u003c\/p\u003e \u003cp\u003eCross-Exchange Rate 46\u003c\/p\u003e \u003cp\u003eBid and Offer Quotations in the Interbank Market 47\u003c\/p\u003e \u003cp\u003eArbitrage in the Foreign Exchange Market 47\u003c\/p\u003e \u003cp\u003eMajor Players in the Foreign Exchange Market 47\u003c\/p\u003e \u003cp\u003eSpeculative Transactions 50\u003c\/p\u003e \u003cp\u003eForeign Exchange Loss 50\u003c\/p\u003e \u003cp\u003eSettlement Risk 51\u003c\/p\u003e \u003cp\u003eSpot Rate and the Law of One Price 51\u003c\/p\u003e \u003cp\u003eBig Mac Index 52\u003c\/p\u003e \u003cp\u003eCentral Bank Intervention 54\u003c\/p\u003e \u003cp\u003eRelative Version of Purchasing Power Parity 56\u003c\/p\u003e \u003cp\u003eExchange Rate Pass-Through 59\u003c\/p\u003e \u003cp\u003eSpot Exchange Rate and Nominal Interest Rate 61\u003c\/p\u003e \u003cp\u003eForward Exchange Rate and Covered Interest Parity 62\u003c\/p\u003e \u003cp\u003eForward Premium or Discount for Selected Currencies 65\u003c\/p\u003e \u003cp\u003eInternational Parity Relationship 66\u003c\/p\u003e \u003cp\u003eReal Exchange Rate 66\u003c\/p\u003e \u003cp\u003eReal Exchange Rate and East Asian Currency Crisis 68\u003c\/p\u003e \u003cp\u003eCase Study: Real-World Furniture, Inc. 69\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Application of Options and Futures for Managing Exposure 75\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDeterminants of the Option Price (Premium) 75\u003c\/p\u003e \u003cp\u003eOptions Traded in Organized Exchanges 77\u003c\/p\u003e \u003cp\u003eSensitivity of Put and Call Price to Underlying Factors 79\u003c\/p\u003e \u003cp\u003eFunctions of Options and Futures 82\u003c\/p\u003e \u003cp\u003eHedging Receivables Denominated in Foreign Currency 86\u003c\/p\u003e \u003cp\u003eSpeculation on the Futures Premium or Discount 91\u003c\/p\u003e \u003cp\u003eHedge Ratio 93\u003c\/p\u003e \u003cp\u003ePrice Discovery of Options and Futures 95\u003c\/p\u003e \u003cp\u003eRegulatory Arbitrage 96\u003c\/p\u003e \u003cp\u003eBinomial Option Pricing 96\u003c\/p\u003e \u003cp\u003eHedged Portfolio 99\u003c\/p\u003e \u003cp\u003eDerivatives Application in Practice 100\u003c\/p\u003e \u003cp\u003eSynthetic Forward Contract 101\u003c\/p\u003e \u003cp\u003eCase Study: Applications of Futures Contracts in Portfolio Hedging 102\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Principles of Futures: Pricing and Applications 107\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCost of Carry 107\u003c\/p\u003e \u003cp\u003eStock Index Futures 108\u003c\/p\u003e \u003cp\u003eIndex Arbitrage 109\u003c\/p\u003e \u003cp\u003ePortfolio Insurance 113\u003c\/p\u003e \u003cp\u003eHedging with Stock Index Futures Options 115\u003c\/p\u003e \u003cp\u003eBasis Risk 119\u003c\/p\u003e \u003cp\u003eChanging the Beta of the Portfolio with Futures 120\u003c\/p\u003e \u003cp\u003eAnticipatory Hedge with Stock Index Futures 122\u003c\/p\u003e \u003cp\u003eCase Study: Competition for Safeway, PLC 123\u003c\/p\u003e \u003cp\u003eManaging Exposure of an Individual Stock 124\u003c\/p\u003e \u003cp\u003eCurrency Futures 124\u003c\/p\u003e \u003cp\u003eHedging with Currency Futures 126\u003c\/p\u003e \u003cp\u003eAnticipatory Hedging of Weakening Currency 128\u003c\/p\u003e \u003cp\u003eRolling Over the Futures Hedge 129\u003c\/p\u003e \u003cp\u003eMarking to Market and Margin 131\u003c\/p\u003e \u003cp\u003eCommodity Futures 132\u003c\/p\u003e \u003cp\u003eSpread Position 133\u003c\/p\u003e \u003cp\u003eHedging with Commodities Futures 134\u003c\/p\u003e \u003cp\u003eEmpirical Evidence: Forward and Future Prices 138\u003c\/p\u003e \u003cp\u003eCase Study: Chockletto International Hedging 140\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Interest Rate Futures: Pricing and Applications 143\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTreasury Bills Futures 144\u003c\/p\u003e \u003cp\u003eSpot Rate 144\u003c\/p\u003e \u003cp\u003eForward Rate 146\u003c\/p\u003e \u003cp\u003eDeterminants of the Shape of the Term Structure of Interest Rates 148\u003c\/p\u003e \u003cp\u003eApproximate Duration 154\u003c\/p\u003e \u003cp\u003ePricing Treasury Bill Futures 155\u003c\/p\u003e \u003cp\u003eEurodollar Futures 156\u003c\/p\u003e \u003cp\u003eTreasury Notes Futures 158\u003c\/p\u003e \u003cp\u003eTreasury Bond Futures 160\u003c\/p\u003e \u003cp\u003eConversion Factor 162\u003c\/p\u003e \u003cp\u003eArbitrage in the Interest Rates Futures Market 165\u003c\/p\u003e \u003cp\u003ePricing Synthetic Futures or Forward 165\u003c\/p\u003e \u003cp\u003eHedging with Futures: Duration-Based Approach 168\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Swaps 177\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eInterest Rate Swaps 178\u003c\/p\u003e \u003cp\u003eForward Rate Agreement 178\u003c\/p\u003e \u003cp\u003eInterest Rate Conventions 181\u003c\/p\u003e \u003cp\u003eStripes of Forward Rate Agreements 181\u003c\/p\u003e \u003cp\u003eMotivations for Swaps 183\u003c\/p\u003e \u003cp\u003eSwaps Due to Comparative Advantage 185\u003c\/p\u003e \u003cp\u003eSwap Valuation 188\u003c\/p\u003e \u003cp\u003eInterest Rate Caps, Floors, Collars, and Corridors 190\u003c\/p\u003e \u003cp\u003eVolatility of Interest Rates 198\u003c\/p\u003e \u003cp\u003eSwaptions 200\u003c\/p\u003e \u003cp\u003eCallable Swap 201\u003c\/p\u003e \u003cp\u003ePutable Swap 202\u003c\/p\u003e \u003cp\u003eWarehousing Swap 203\u003c\/p\u003e \u003cp\u003eSwaps Risks 203\u003c\/p\u003e \u003cp\u003eExotic Swaps 206\u003c\/p\u003e \u003cp\u003eCurrency Swaps 207\u003c\/p\u003e \u003cp\u003eBreak-Even Analysis of Swap and Refinancing 211\u003c\/p\u003e \u003cp\u003eOptions Embedded in Currency Swaps 212\u003c\/p\u003e \u003cp\u003eThree-Way Swaps 213\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Translation, Transaction, and Operating Exposure 217\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTranslation Exposure 217\u003c\/p\u003e \u003cp\u003eCase Study: Accounting Exposure 220\u003c\/p\u003e \u003cp\u003eFunctional Currency 222\u003c\/p\u003e \u003cp\u003eManaging Translation Exposure 223\u003c\/p\u003e \u003cp\u003eBalance Sheet Hedging 223\u003c\/p\u003e \u003cp\u003eTransaction Exposure 224\u003c\/p\u003e \u003cp\u003eOperating Exposure 224\u003c\/p\u003e \u003cp\u003eHedging in Practice: Nike and DuPont 225\u003c\/p\u003e \u003cp\u003eExposure Netting 226\u003c\/p\u003e \u003cp\u003eForward Hedging: Example 226\u003c\/p\u003e \u003cp\u003eMoney Market Hedge 228\u003c\/p\u003e \u003cp\u003eHedging with Futures 231\u003c\/p\u003e \u003cp\u003eOption Hedging 233\u003c\/p\u003e \u003cp\u003eValue at Risk 235\u003c\/p\u003e \u003cp\u003eTwo Assets Portfolio 237\u003c\/p\u003e \u003cp\u003eLufthansa Buys Aircraft from Boeing 238\u003c\/p\u003e \u003cp\u003eManaging Operating Exposure 243\u003c\/p\u003e \u003cp\u003eFixed for Fixed Currency and Interest\u003c\/p\u003e \u003cp\u003eRate Swaps 249\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Debt, Equity, and Other Synthetic Structures 253\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eInverse Floater 253\u003c\/p\u003e \u003cp\u003eCreating a Synthetic Fixed Rate 256\u003c\/p\u003e \u003cp\u003eSynthetic Structures 258\u003c\/p\u003e \u003cp\u003eMortgage- and Asset-backed Derivatives 259\u003c\/p\u003e \u003cp\u003ePrepayment Risks 259\u003c\/p\u003e \u003cp\u003eSequential-Pay Collateralized Mortgage Obligations 261\u003c\/p\u003e \u003cp\u003eInterest Only and Principal Only 261\u003c\/p\u003e \u003cp\u003eEquity-Linked Debt 263\u003c\/p\u003e \u003cp\u003eZero Coupon Bond Linked to Goldman Sachs Commodity Index 264\u003c\/p\u003e \u003cp\u003eGlobal Diversification with Swaps 265\u003c\/p\u003e \u003cp\u003eCatastrophe Bonds 266\u003c\/p\u003e \u003cp\u003eLiability Management with Derivatives 266\u003c\/p\u003e \u003cp\u003eSpread on Treasury Yield Curve 275\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Options on Futures 279\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSpreads 281\u003c\/p\u003e \u003cp\u003eBull Spreads 281\u003c\/p\u003e \u003cp\u003eBear Spreads 283\u003c\/p\u003e \u003cp\u003eButterfly Spreads 284\u003c\/p\u003e \u003cp\u003eBox Spreads 285\u003c\/p\u003e \u003cp\u003eLong Straddle 288\u003c\/p\u003e \u003cp\u003eShort Straddle 289\u003c\/p\u003e \u003cp\u003eCalendar Spread 290\u003c\/p\u003e \u003cp\u003eStrips 292\u003c\/p\u003e \u003cp\u003eStraps 294\u003c\/p\u003e \u003cp\u003ePrice and Yield Volatility 296\u003c\/p\u003e \u003cp\u003eSpread Trades on Treasury Curves 297\u003c\/p\u003e \u003cp\u003eExotic Options 301\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Credit Derivatives: Pricing and Applications 307\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCredit Derivatives Products 308\u003c\/p\u003e \u003cp\u003eCredit Event\/Default Swap 309\u003c\/p\u003e \u003cp\u003ePricing Credit Default Swap 312\u003c\/p\u003e \u003cp\u003eUnwinding and Assignability of Credit Default Swaps 315\u003c\/p\u003e \u003cp\u003eDefault Probability 318\u003c\/p\u003e \u003cp\u003eBreak-Even High-Yield Bonds 320\u003c\/p\u003e \u003cp\u003eDefault Risk\/Return 321\u003c\/p\u003e \u003cp\u003eCreating Synthetic Assets 321\u003c\/p\u003e \u003cp\u003eSynthetic Credit Default Swaps 323\u003c\/p\u003e \u003cp\u003eCredit Default Swap Applications 323\u003c\/p\u003e \u003cp\u003eRestructuring 324\u003c\/p\u003e \u003cp\u003eCredit-Linked Notes 326\u003c\/p\u003e \u003cp\u003eSynthetic Collateralized Loan Obligations 327\u003c\/p\u003e \u003cp\u003eObjectives of Structuring Collateralized Loan Obligations 329\u003c\/p\u003e \u003cp\u003eSynthetic Collateralized Loan Obligations 329\u003c\/p\u003e \u003cp\u003eSynthetic Arbitrage Collateralized Loan Obligations 331\u003c\/p\u003e \u003cp\u003eSynthetic Balance Sheet Collateralized Loan Obligations 332\u003c\/p\u003e \u003cp\u003eCapital Adequacy Requirements 333\u003c\/p\u003e \u003cp\u003eCredit Exposure Method 334\u003c\/p\u003e \u003cp\u003eTotal Return Swaps 335\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Credit and Other Exotic Derivatives 341\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCredit Spread Forward 342\u003c\/p\u003e \u003cp\u003eCredit Spread Option 342\u003c\/p\u003e \u003cp\u003eAsset Swap Switch 344\u003c\/p\u003e \u003cp\u003eCallable Step-ups 347\u003c\/p\u003e \u003cp\u003eTransfer and Convertibility Protection 348\u003c\/p\u003e \u003cp\u003ePricing Transfer and Convertibility Protection 353\u003c\/p\u003e \u003cp\u003eSpeculative Capital 354\u003c\/p\u003e \u003cp\u003eEmerging Market Debts and Brady Bonds 354\u003c\/p\u003e \u003cp\u003eInternational Swaps and Derivatives Association Master Agreement 356\u003c\/p\u003e \u003cp\u003eWeather Derivatives 357\u003c\/p\u003e \u003cp\u003eWeather Derivatives Market 358\u003c\/p\u003e \u003cp\u003eExchange-Traded Weather Derivatives 359\u003c\/p\u003e \u003cp\u003eCME Futures 360\u003c\/p\u003e \u003cp\u003eCME Options 362\u003c\/p\u003e \u003cp\u003eSwaps 363\u003c\/p\u003e \u003cp\u003eReferences 365\u003c\/p\u003e \u003cp\u003eIndex 373\u003c\/p\u003e","brand":"John Wiley \u0026 Sons Inc","offers":[{"title":"Default Title","offer_id":49402548486487,"sku":"9780471281153","price":41.96,"currency_code":"GBP","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0817\/1739\/5799\/files\/9780471281153.jpg?v=1730480721","url":"https:\/\/bookcurl.com\/products\/managing-global-financial-and-foreign-exchange-rate-risk-159-wiley-finance-9780471281153","provider":"Book Curl","version":"1.0","type":"link"}