... 1 Chapter 16Foreign Exchange Derivative MarketsFinancial Markets and Institutions, 7e, Jeff MaduraCopyright ... MarketsCommercial banks take positions in currencies to capitalize on expected exchange rate movements 2 Chapter OutlineBackground on foreign exchange marketsFactors affecting exchange ratesMovements ... percent annualized (.1389 percent over ten days), which equals €10,013,889 Thus, Zena earns €559 ,259 over a ten-day period. 22Foreign Exchange DerivativesForeign exchange derivatives can be...