International money / Adrian Buckley = 国际货币 / 艾德里安·巴克利著. 2nd ed.

1. what is international money all about? 1

the foreign exchange markets 1

eurocurrency markets 3

2. the essence of currency calculations 6

foreign exchange markets 6

inflation, interest and exchange rates 8

practicalities 14

an overview 14

appendix: a deductive proof of the four-way equlvalence
model 15

3. how are foreign exchange rates quoted? 23

the plavers 24

methods of quotation 26

forward contracts and quotations:

an overview 29

4. what makes exchange rates move? 30

the balance of payments approach 30

the monetary approach 32

chartism 33

the efficient markets hypothesis 36

.an overview 38



5. what is foreign exchange risk? 40

transaction exposure 4l

translation exposure 41

economic exposure 46

an overview 49

6. why worry about foreign exchange risk? 50

transaction exposure 50

economic exposure 53

transiation exposure 54

an overview 56

7. internal techniques of managing foreign exchange

exposure 58

netting 58

matching 59

leading and lagging 60

price variation 62

invoicing in foreign currency 62

asset and liability management 66

an overview 67

8. external techniques of managing foreign exchange

exposure 68

forward markets 68

trading purpose of the forward market 69

short-term borrowing 75

discounting foreign currency denominated bills receivable 77

factoring foreign currency denominated receivables 77

currency overdrafts 78

government exchange risk guarantees 79

an overview 79

9. what are currency swaps? 8l

swaps 81

an overview 84

10. what are financial futures on foreign exchange? 88

financial futures in general 88

currency contracts 9l

an overview 94



ll. how do currency options work? 95

how currency option markets work 96

currency option strategies 100

option pricing models l03

corporate use of currency options l05

an overview l07

12. lnterest rate risk 108

the term structure of interest rates l08

forward rate agreements 1l2

interest rate futures ll4

interest rate swaps 114

interest rate options l15

an overview 116

13. the value of growth options 117

an example using decision trees 118

flexibility and value creation 120

the black and scholes model l21

another example with dectsion trees l22

an overview l25

14. is the international investment dedsion different? 126

the international complications 126

an overview 132

15. is the international financing decision differerlt? 133

the eurobond market l33

borrowing internationally l35

the risks of borrowing internationally 137

an overview l38

l6. the european monetary system 139

principal features of the ems l39

the exchange rate mechanism l40

european monetary union 14l

german reunification l42

black wednesday 144

the wake of black wednesday 145

an overview l47



17. why hedge anyway? 149

the capital asset pricing model 149

what does exposure management aim to achieve? 156

the arguments against corporate hedging l56

employees and managers 158

and shareholders too l58

the value of the firm 159

financial distress l59

an overview l62

18. economic exposure revisited l63

macroeconomic exposure 163

the analysis 164

hedging l65

interest rates invariably key 166

experiments with macroeconomic exposure l67

an overview 167

questions and answers l68

numerical questions 168

bramit investment trust plc l70

answers to numerical questions l72

suggested answers to the bramit investment trust

questions l75

further reading 180

index 18l