International Finance Flashcards

1
Q

General principles International finance

A
  • Exchange rate risk
  • Economic risk
  • Political risk
  1. Interest rate parity (forward rate)
  2. Interest rate arbitrage (risk free profit)
  3. Purchasing power parity (inflation) spot rate
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2
Q

Hedges

A
  1. Foreign contracts
  2. Currency options
  3. Money market hedge
  4. Leads and Lags
  5. Currency of invoice
  6. Future Contracts
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