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Currency and Interest Rate Swaps

INTERNATIONAL FINANCIAL MANAGEMENT Fifth Edition EUN / RESNICK McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Interest Rate and Currency Swaps 14 Chapter...

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Introduction

6.1 Swaps Chapter 6 6.2 Swaps • Contracts that can be constructed with multiple forward contracts • An agreement to exchange cash flows at specified future times according to certain specified rules •...

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Chapter 14

Chapter 14 Interest Rate and Currency Swaps Interest Rate Risk • All firms – domestic or multinational, small or large, leveraged, or unleveraged – are sensitive to interest rate movements in one way...

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SEO Search Engine Optimization

Micro-Site and Business Directory Customer Sales Call Presentation Explaining and Selling PLATINUM & GOLD Micro-site Business Directory Listings to the end user Elevator Sales Pitch  We have...

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P A R T O N E THE INTERNATIONAL FINANCIAL ENVIRONMENT

Currency and Interest 10 Rate Swaps Chapter Ten Chapter Objective:This chapter discusses currency and interest rate swaps, which are relatively new instruments for hedging long-term interest rate risk...

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Derivatives

Derivatives Appendix A Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. A-2 Derivatives Derivatives are financial instruments that “derive” their values from some other security...

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elvis.sob.tulane.edu

Description ± A swap is an agreement between two parties to exchange (swap) payments at certain dates in the future. A’s payments to B Counterparty A Counterparty B B’s payments to A Description ± The...

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International Finance

International Finance Chapter 18 International Finance • Total global trade (as measured by exports): – 1948: $58 bil ion– 2008: $16.1 tril ion– From 1948 to 2008, increase of 27,805%, or roughly 10%...

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Quantifying interest rate risk

Floating rate notes • Coupon payments not fixed over life of the note• Coupon payments based on some variable interest rate easily observable in the market • Usually, payment-in-arrears, i.e., each...

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Global Business Today, 5e

chapter 9 The Foreign Exchange Market McGraw-Hill/IrwinGlobal Business Today, 5e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Chapter 9: The Foreign Exchange Market INTRODUCTION This...

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INTERNATIONAL FINANCING AND INTERNATIONAL FINANCIAL MARKETS

CHAPTER9 INTERNAT A IONAL FINANCING AND INTERNAT A IONAL FINANCIAL MARKETS INTERNATIONAL FINANCING AND INTERNATIONAL FINANCIAL MARKETS CHAPTER OVERVIEW: I. CORPORATE SOURCES AND USES OF FUNDS II....

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Using Derivatives to Manage Interest Rate Risk

Using Derivatives to Manage Interest Rate Risk Derivatives  A derivative is any instrument or contract that derives its value from another underlying asset, instrument, or contract. Managing Interest...

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Chapter 6 Fundamentals of Options Hedging

Chapter 6 Fundamentals of Options Hedging © 2007 Thomson Delmar Learning, a part of the Thomson Corporation Options  The goal of this chapter is to provide an introduction to options, one of the most...

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Session 2: Options I

Session 2: Options I C15.0008 Corporate Finance Topics Summer 2006 Outline • Call and put options• The law of one price• Put-call parity• Binomial valuation Options, Options Everywhere! •...

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CHAPTER 13 Options on Futures

CHAPTER 13 Options on Futures In this chapter, we discuss option on futures contracts. This chapter is organized into: 1. Characteristics of Options on Physicals and Options on Futures. 2. The Market...

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Options on Futures Contracts

Options on Futures Contracts Additional Resources  Introduction to Options CME Options on Futures: The Basics Options and Futures  Futures contracts are an obligation  Must deliver or offset...

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