International Finance - 2283 Words

5. Foreign Currency Futures Futures contracts are designed to minimize the problems arising from default risk and to facilitate liquidity in secondary dealing. In the United States, the most important market for foreign currency futures is the International Money Market (IMM) of Chicago, a division of the Chicago Mercantile Exchange. The best way to understand these contracts is to compare them with forward transactions. Like forward contracts, currency futures contracts are, in principle, contracts to deliver a given amount of currency on a given date and at a pre-specified price to be paid later on. Like forward contracts, futures contracts have a zero initial market value: neither the buyer nor the seller has to pay anything†¦show more content†¦Open High Low Settle Change Lifetime High Low JAPAN YEN (CME) ï £ § 12.5 MILLION YEN; $ per yen (.00) Sep .9458 .9466 .9386 .9389 -.0046 .9540 Dec .9425 .9470 .9393 .9396 -.0049 .9529 Mr94 †¦. †¦. †¦. .9417 -.0051 .9490 .7945 .7970 .8700 Open Interest 73,221 3,455 318 Est vol 28,844; vol Wed 36,595; open int 77,028, + 1,820 The first line shows the size of the contract (12.5 m yen) and states that the prices are stated in USD cents. The June 1993 contract had expired, so the tree contracts being traded on 29 July 1993 are the September and December 1993 contracts, and the March 1994 contracts. Note that there was no trading on the March 1994 contracts for that day. The different headers are: Open: The price at the start of trading on 29 July. High and Low: The highest and lowest transaction prices on 29 July. Settle: The settlement price on 29 July (representative of prices around the close). Change: The change in the settlement price between 28 July and 29 July. Lifetime High and Low: The highest and lowest prices during the life of the contract. Open Interest: The number of outstanding contracts (note: trading is concentrated in the nearest maturity contract). The lastShow MoreRelatedInternational Finance Exam4417 Words   |  18 PagesInternational finance FIN 412 Exam #2 MC:  Examples of single-currency interest rate swap and cross-currency interest rate swap are:   A.  fixed-for-floating rate interest rate swap, where one counterparty exchanges the interest payments of a floating- rate debt obligations for fixed-rate interest payments of the other counter party B.  fixed-for-fixed rate debt service (currency swap), where one counterparty exchanges the debt service obligations of a bond denominated in one currency forRead MoreSources Of Finance For Synergy International Limited1627 Words   |  7 Pagessources of finance for Synergy International Limited to enable the company to invest in new machinery, at a cost of approximately  £225,000, in order to manufacture mobile phone covers for the Samsung S7 Edge. Also included in this report, are the information needs of the different decision makers. 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Palate-Able Delights (PAD) is a niche retailer of high-end food products imported from various parts of the world. Iranian saffron and caviar, French champagnes, Italian truffles and olive oils, vintage balsamic vinegars, fine cheeses, reserve wines from the leading vintners, even limited-availability spring waters†¦ifRead MoreInternational Finance and Economy Essay1225 Words   |  5 Pagesall-time high of 149,713.4 USD Million in November of 2013. The foreign currency reserve for Turkey in December of 2013 was 109,279.75 USD million. Some worry that much of the foreign capital that finances Turkey’s current account deficit is of the flighty sort, which can leave quickly. 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Different areas of effect of globalization†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..5 4. International finance†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..9 5. The impact of globalization on international finance i. Relationship between globalization and international finance†¦Ã¢â‚¬ ¦....12 ii. Globalization and its impact on developing countries†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Read MoreEssay on finance case vanguard international growth830 Words   |  4 Pagesï » ¿ Issues 1. Explain why an individual investor might want to invest in an international growth fund? 2. Describe the risk associated with making an investment in an international growth fund. Identify the risks that would be common to domestic an international funds, and those risk that would be unique to an international fund. 3. 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