International Financial Operations: Arbitrage, Hedging, Speculation, Financing and Investment

✍ Scribed by Imad Moosa

• Publisher: Palgrave Macmillan
• Year: 2003
• Tongue: English
• Leaves: 385
• Series: Finance and capital markets
• Category: Library

✦ Synopsis

Cross-border transactions involve a variety of financial operations, including arbitrage, hedging, speculation, financing, and investment. These inter-related operations give rise to foreign exchange exposure and affect the overall financial performance of multinational firms. The book aims to provide an integrated treatment of multinational financial operations, whilst taking into account some real- world complexities such as bid/offer spreads, transaction costs, capital rationing, and market imperfections.

✦ Table of Contents

Contents......Page 6
List of Figures......Page 10
List of Tables......Page 14
Currency Symbols......Page 16
List of Abbreviations......Page 17
Notation and Conventions......Page 19
Preface......Page 21
CHAPTER 1 Two-Currency, Three-Currency and Multi-Currency Arbitrage......Page 24
CHAPTER 2 Covered and Uncovered Interest Arbitrage......Page 42
CHAPTER 3 Other Kinds of Arbitrage and Some Extensions......Page 67
CHAPTER 4 Hedging Exposure to Foreign Exchange Risk: The Basic Concepts......Page 88
CHAPTER 5 Financial and Operational Hedging of Exposure to Foreign Exchange Risk......Page 128
CHAPTER 6 Measuring the Hedge Ratio......Page 179
CHAPTER 7 Speculation in the Spot and Currency Derivative Markets......Page 206
CHAPTER 8 Speculation: Generating Buy and Sell Signals......Page 232
CHAPTER 9 International Short-Term Financing and Investment......Page 272
CHAPTER 10 International Long-Term Financing, Capital Structure and the Cost of Capital......Page 294
CHAPTER 11 International Long-Term Portfolio Investment......Page 317
CHAPTER 12 Foreign Direct Investment......Page 341
References......Page 364
Index......Page 380