Buch, Englisch, 864 Seiten, Format (B × H): 184 mm x 261 mm, Gewicht: 1649 g
Theory Into Practice
Buch, Englisch, 864 Seiten, Format (B × H): 184 mm x 261 mm, Gewicht: 1649 g
ISBN: 978-0-691-13667-7
Verlag: Princeton University Press
International Finance presents the corporate uses of international financial markets to upper undergraduate and graduate students of business finance and financial economics. Combining practical knowledge, up-to-date theories, and real-world applications, this textbook explores issues of valuation, funding, and risk management. International Finance shows how theoretical applications can be brought into managerial practice. The text includes an extensive introduction followed by three main sections: currency markets; exchange risk, exposure, and risk management; and long-term international funding and direct investment. Each section begins with a short case study, and each of the sections' chapters concludes with a CFO summary, examining how a hypothetical chief financial officer might apply topics to a managerial setting. The book also contains end-of-chapter questions to help students grasp the material presented. Focusing on international markets and multinational corporate finance, International Finance is the go-to resource for students seeking a complete understanding of the field.Rigorous focus on international financial markets and corporate finance concepts An up-to-date and practice-oriented approach Strong real-world examples and applications Comprehensive look at valuation, funding, and risk management Introductory case studies and "CFO summaries," and end-of-chapter quiz questions Solutions to the quiz questions are available online
Autoren/Hrsg.
Fachgebiete
Weitere Infos & Material
Preface xi
Acknowledgments xiv
Part I: Introduction and Motivation for International Finance 1
Chapter 1: Why Does the Existence of Borders Matter for Finance? 3
1.1 Key Issues in International Business Finance 4
1.2 What Is on the International CFO's Desk? 11
1.3 Overview of this Book 13
Chapter 2: International Finance: Institutional Background 16
2.1 Money and Banking: A Brief Review 16
2.2 The International Payment Mechanism 28
2.3 International ("Euro") Money and Bond Markets 33
2.4 What Is the Balance of Payments? 35
2.5 Exchange-Rate Regimes 45
Test Your Understanding 58
Part II: Currency Markets 63
About This Part 65
Chapter 3: Spot Markets for Foreign Currency 69
3.1 Exchange Rates 69
3.2 Major Markets for Foreign Exchange 78
3.3 The Law of One Price for Spot Exchange Quotes 87
3.4 Translating FC Figures: Nominal Rates, PPP Rates, and Deviations from PPP 97
3.5 CFO's Summary 108
3.6 Technical Notes 110
Test Your Understanding 110
Chapter 4: Understanding Forward Exchange Rates for Currency 115
4.1 Introduction to Forward Contracts 115
4.2 The Relation between Exchange and Money Markets 119
4.3 The Law of One Price and Covered Interest Parity 123
4.4 The Market Value of an Outstanding Forward Contract 130
4.5 CFO's Summary 140
4.6 Appendix: Interest Rates, Returns, and Bond Yields 141
4.7 Appendix: The Forward Forward and the Forward Rate Agreement 145
Test Your Understanding 154
Chapter 5: Using Forwards for International Financial Management 157
5.1 Practical Aspects of Forwards in Real-World Markets 157
5.2 Using Forward Contracts (1): Arbitrage 161
5.3 Using Forward Contracts (2): Hedging Contractual Exposure 164
5.4 Using Forward Contracts (3): Speculation 172
5.5 Using Forward Contracts (4): Minimizing the Impact of Market Part Imperfections 177
5.6 Using the Forward Rate in Commercial, Financial, and Accounting Decisions 190
5.7 CFO's Summary 194
Test Your Understanding 198
Chapter 6: The Market for Currency Futures 202
6.1 Handling Default Risk in Forward Markets: Old and New Tricks 202
6.2 How Futures Contracts Differ from Forward Markets 207
6.3 Effect of Marking to Market on Futures Prices 215
6.4 Hedging with Futures Contracts 218
6.5 The CFO's Conclusion: Pros and Cons of Futures Contracts Relative to Forward Contracts 226
6.6 Appendix: Eurocurrency Futures Contracts 227
6.7 Technical Notes 232
Test Your Understanding 234
Chapter 7: Markets for Currency Swaps 239
7.1 How the Modern Swap Came About 240
7.2 The Fixed-for-Fixed Currency Swaps 244
7.3 Interest-Rate Swaps 252
7.4 Cross-Currency Swaps 256
7.5 CFO's Summary 258
7.6 Technical Notes 259
Test Your Understanding 259
Chapter 8: Currency Options (1): Concepts and Uses 262
8.1 An Introduction to Currency Options 262
8.2 Institutional Aspects of Options Markets 269
8.3 An Aside: Futures-Style Options on Futures 272
8.4 Using Options (1): Arbitrage 275
8.5 Using Options (2): Hedging 281
8.6 Using Options (3): Speculation 288
8.7 CFO's Summary 291
Test Your Understanding 294
Chapter 9: Currency Options (2): Hedging and Valuation 299
9.1 The Logic of Binomial Option Pricing: One-Period Problems 300
9.2 Notation and Assumptions for the Multiperiod Binomial Model 306
9.3 Stepwise Multiperiod Binomial Option Pricing 312
9.4 Toward Black-Merton-Scholes (European Options) 319
9.5 CFO's Summary 323
9.6 Technical Notes 325
Test Your Understanding 331
Part III: Exchange Risk, Exposure, and Risk Management 337
About This Part 339
Chapter 10: Do We Know What Makes Forex Markets Tick? 342
10.1 The Behavior of Spot Exchange Rates 344
10.2 The PPP Theory and the Behavior of the Real Exchange Rate 358
10.3 Exchange Rates and Economic Policy Fundamentals 373
10.4 Conclusion 384
10.5 Technical Note
