C/F/354. Foreign Exchange Market and Cost of Capital

The paper falls into three parts, the first part presents an account of the debate about whether the concept of Beta is dead or not; the second part touches on the difference between domestic and international CAPM; the third part looks at the relationship between the interest rates and the exchange rates with reference to dollar, sterling and euro.

S/F/169. Explain how futures contract and forward contract may be applied to reduced risk in foreign exchange currency market. Discuss in detail particularly the difference in the application of the two methods

The paper examines the characteristics of futures contracts and forward contracts discussing their exposure to foreign exchange markets, highlighting the difference between them, describing the risks in the foreign exchange market, and showing how futures and forward contracts can be used to reduce these risks.

C/F/263. Foreign Exchange Rate Risk Exposure

The paper discusses three specific issues related to foreign exchange exposure in international firms, i.e. the implications of sourcing raw materials from overseas while production is in the UK, the exposure to exchange rate risk of a UK firm opening a new plant in Japan or the US, and the implication of opening a new plant overseas simultaneously sourcing raw materials from outside the UK.

S/E/92. Effects of common currency on European banking system

The paper examines the impact of the common currency introduction on the European banking system analysing the state of the net loans to total assets ratio between the EU countries and conducting cross-country ANOVA and TUKEY test analysis. Literature is reviewed on the structure and policy of the EU banking sector.

C/F/146. International Finance: The case study of Merton Electronics

This paper draws upon the case study of Merton Electronics, in a way to address issues of International finance. The paper relies mostly on the strategic option the company has to take in order to take better advantage of the foreign currency markets. It explores the concepts involved in the derivative markets and on hedging the risk from foreign currency exposure.

P/F/521. Interest rates and exchange rates in UK and Spain

The paper examines the fluctuation of exchange rates in the UK and Spain analysing the changes in interest rates in both countries over the past decade, and seeking to identify a correlation between the movements in exchange rates and interest rates.

C/F/131. Foreign Exchange Market

This work analyzed the mechanics of the foreign exchange market. The average daily turnover of this market amounted to $1.9 trillion in 2004 making it the biggest and the most liquid financial market in the world. The first section of this paper gives account of the major market participants, geographical centres and the most important currencies of the foreign exchange market. Then the second section dissects different types of currency risk exposure. Finally, various hedging instruments are examined and several numerical examples are given. Overall, this work presents an interesting overview of the foreign exchange market.