北大金融学课件(英文版)第4章(6课时).ppt

CHAPTER 4 Forward Exchange and International Financial Investment Exposure to Exchange Rate Risk We are exposed to exchange rate risk if the value of our income or net worth will change when exchange rates in the future change in ways that are not expected. Some Cases An American tourist in Japan, carrying U.S dollars with her; After 6 months, you will go to study in Oxford University. Should you translate your RMB into Pound right now, or wait for a while? You have invested in a stock listed on NASQ, and in 6 month you will have to sell it to get your money back to pay your tuition in Shenzhen University; Attitudes to Exchange Rate Risk Hedging is taking an action to reduce your exposure to exchange rate risk. (risk avoiding) ? Speculation is taking an action that increases your exposure to exchange rate risk, usually to try to profit from your belief about what future exchange rates will be. (willing to take risk) Forward Foreign Exchange Forward foreign exchange contract is an agreement to exchange one currency for another on some date in the future at a price set now (the forward exchange rate). It can be used by hedgers as well as speculators. A Typical Forward FOREX Contract Exchange Rate Spot exchange rate : set now and for immediate delivery of foreign exchange Forward exchange rate : set now but for future delivery of foreign exchange Future spot rate : the spot rate for a time in the future Exchange Rates: New York Closing Snapshot Long vs. Short Position Open positions in a foreign currency: net liability position (short position) vs. net asset position (long position) Hedgers are persons who avoid any “open” positions. Speculators are those who are willing to take a net position in a foreign currency. Basics of Forward FOREX Customized clauses Size Maturity date（common dates are 30, 90, and 180 days forward） A margin? Depends on your credit standing Traditional Forex vs. Derivatives Traditional forward exchange vs. Futures Options and S