Prof. Dr AP Faure Foreign Exchange Market: An Introduction Download free books at Download free eBooks at bookboon.com 2 AP Faure Foreign Exchange Market: An Introduction Download free eBooks at bookboon.com 3 Foreign Exchange Market: An Introduction 1 st edition © 2013 Quoin Institute (Pty) Limited & bookboon.com ISBN 978-87-403-0590-6 Download free eBooks at bookboon.com Click on the ad to read more Foreign Exchange Market: An Introduction 4 Contents Contents 1 Essence 8 1.1 Learning objectives 8 1.2 e foreign exchange market in a nutshell 8 1.3 Organisational structure of the forex market 11 1.4 Monetary unit 14 1.5 Foreign exchange and bank deposits 14 1.6 International spot rate quotation conventions 17 1.7 Two-way spot prices 19 1.8 Spread 20 1.9 Cross rates 22 1.10 Foreign exchange risk: appreciation and depreciation 27 1.11 Spot and derivative forex markets 30 1.12 Why exchange rates are important 31 1.13 Summary 32 1.14 Bibliography 32 www.sylvania.com We do not reinvent the wheel we reinvent light. Fascinating lighting offers an infinite spectrum of possibilities: Innovative technologies and new markets provide both opportunities and challenges. An environment in which your expertise is in high demand. Enjoy the supportive working atmosphere within our global group and benefit from international career paths. Implement sustainable ideas in close cooperation with other specialists and contribute to influencing our future. Come and join us in reinventing light every day. Light is OSRAM Download free eBooks at bookboon.com Click on the ad to read more Foreign Exchange Market: An Introduction 5 Contents 2 Derivatives: forwards 34 2.1 Learning objectives 34 2.2 Introduction 34 2.3 Derivatives markets 35 2.4 Denition of a forward 37 2.5 Types of forwards 38 2.6 Outright forward foreign exchange contracts: functions and pricing 46 2.7 Forward exchange market 56 2.8 Summary 57 2.9 Bibliography 57 3 Derivatives: futures, options & swaps 59 3.1 Learning objectives 59 3.2 Introduction 60 3.3 Currency futures 61 3.4 Currency options 68 3.5 Currency swaps 71 3.6 Summary 72 3.7 Bibliography 73 360° thinking . © Deloitte & Touche LLP and affiliated entities. Discover the truth at www.deloitte.ca/careers