目录 Part 1 Global Finan Environment1 Project 1 International Monetary System1 Task 1 Overview of International Monetary System2 1.1History of the International Monetary System2 1.2The Creation of the Euro9 1.3Currency Turmoil and Crises Post-now10 Task 2 Contemporary Currency Regimes11 2.1IMF’s Exchange Rate Regime Classifications11 2.2Fixed Versus Flexible Exchange Rate12 2.3Distinction Between Fixed Exchange Rate and Flexible Exchange Rate14 2.4Emerging Markets and System Choices14 Task 3 European Monetary System16 3.1From the Treaty of Rome to the Werner Report, 1957—1970 16 3.2From the Werner Report to the European Monetary System,1970—1979 17 3.3From the start of EMS to Maastricht, 1979—1991 17 3.4From Maastricht to the Euro and the Euro Area, 1991—2002 17 3.5The Largest-ever Currency Changeover18 Task 4 Exchange Rate Regimes: What Lies Ahead?19 Mini Case20 The Revaluation of the Chinese Yuan20 Key Terms27 Summary29 Exercises31 Project 2 Balance of Payment Accounting34 Task 1 Balance of Payment Accounts34 1.1Definition of the Balance of Payment34 1.2The Importance of BOP36 1.3Fundamentals of Balance of Payment Accounting36 1.4Accounts of the Balance of Payment38 Task 2 Disequilibrium of Balance of Payment47 Task 3 Trade Balance and Exchange Rate49 3.1The Balance of Payment Interaction with Key Macroeconomic Variables49 3.2Trade Balance and Exchange Rate52 3.3Capital Mobility53 Mini Case55 Global Remittances55 Key Terms60 Summary62 Exercises63 Part 2 Foreign Exchange Markets67 Project 3 The Foreign Exchange Market67 Task 1 Function and Structure of the Foreign Exchange market68 1.1Geographical Extent of the Foreign Exchange Market68 1.2History of Foreign Exchange68 1.3Functions of the Foreign Exchange Market69 1.4Market Participants70 1.5Transactions in the Interbank Market72 1.6Size of the Market74 Task 2 Foreign Exchange Rates and Quotations76 2.1Currency Symbols76 2.2Interbank Quotations77 2.3Direct and Indirect Quotes78 2.4Bid and Ask Quotations79 2.5Forward Quotations in Percentage Terms80 2.6Cross Rates81 2.7Intermarket Arbitrage82 2.8Measuring a Change in Spot Exchange Rates84 Mini Case86 The Saga of the Venezuelan Bolivar Fuerte86 Key Terms90 Summary91 Exercises92 Project 4 Futures and Options on Foreign Exchange95 Task 1 Foreign Currency Futures95 1.1Contract Specifications96 1.2Currency Futures Markets97 1.3Using Foreign Currency Futures98 Task 2 Foreign Currency Options100 2.1Currency Options100 2.2Currency Options Markets102 2.3Currency Futures Options103 2.4Basic Option Pricing Relationships at Expiry104 2.5American Option Pricing Relationships107 2.6European Option Pricing Relationships109 Mini Case112 Warren Buffett’s Love-Hate Relationship with Derivatives112 Key Terms117 Summary118 Exercises119 Part 3 Foreign Exchange Exposure122 Project 5 Management of Transaction Exposure122 Task 1 Types of Foreign Exchange Exposure123 1.1Transaction Exposure123 1.2Translation Exposure123 1.3Operating Exposure123 Task 2 Hedge124 2.1Hedge Definition124 2.2Advantages and Disadvantages of Hedging124 Task 3 Ways of Hedging Transaction Exposure126 3.1Forward Market Hedge126 3.2Money Market Hedge129 3.3Options Market Hedge130 3.4Comparison of Alternatives132 Task 4 Should the Firm Hedge?134 Mini Case135 Banbury Impex(India)135 Key Terms141 Summary141 Exercises142 Project 6 Management of Operating Exposure145 Task 1 Operating Exposure:Definition145 1.1Attributes of Operating Exposure146 1.2Operating and Financing Cash Flows146 1.3Expected Versus Unexpected Changes in Cash Flow147 Task 2 Measuring Operating Exposure148 2.1Short Run149 2.2Medium Run:Equilibrium149 2.3Medium Run:Disequilibrium150 2.4Long Run150 Task 3 Management of Operating Exposure150 3.1Strategic Management of Operating Exposure150 3.2Proactive Management of Operating Exposure152 Mini Case156 Toyota’s European Operating Exposure156 Key Terms159 Summary160 Exercises160 Project 7 Management of Translation Exposure163 Task 1 Overview of Translation Exposure164 1.1Subsidiary Characterization165 1.2Functional Currency165 Task 2 Translation Methods166 2.1Current Rate Method166 2.2Temporal Method167 2.3U.S. Translation Procedures168 2.4Distinction Between the Foreign Exchange Exposures169 2.5Measurement of Translation Exposure170 Task 3 Managing Translation Exposure171 3.1Balance Sheet Hedge Defined171 3.2Balance Sheet Hedge Determination172 Mini Case173 LaJolla Engineering Services173 Key Terms178 Summary178 Exercises180 References184
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