{"product_id":"managing-global-financial-and-foreign-exchange-rate-risk-hardback-9780471281153","title":"Managing Global Financial and Foreign Exchange Rate Risk (Hardback) 9780471281153","description":"\u003cfont face=\"Georgia\"\u003e\r\n\u003cp\u003e\u003cfont size=\"6\"\u003eManaging Global Financial and Foreign Exchange Rate Risk\u003c\/font\u003e\u003cbr\u003e\r\n\r\n\r\n\r\n\r\n\r\n\u003c\/p\u003e\n\u003cp\u003e\u003cfont size=\"4\"\u003eGhassem A. Homaifar (Author)\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e9780471281153, Wiley\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003eHardback, published 20 January 2004\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e400 pages, Charts: 0 B\u0026amp;W, 0 Color; Photos: 0 B\u0026amp;W, 0 Color; Drawings: 42 B\u0026amp;W, 0 Color; Tables: 101 B\u0026amp;W, 0 Color; Exhibits: 0 B\u0026amp;W, 0 Color; Graphs: 100 B\u0026amp;W, 0 Color\u003cbr\u003e23.6 x 16 x 3.4 cm, 0.73 kg\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\r\n\r\n\r\n\r\n\u003cp align=\"justify\"\u003e\u003cstrong\u003e\u003cfont size=\"3\"\u003e\u003cb\u003eA comprehensive guide to managing global financial risk\u003c\/b\u003e  \u003cp\u003eFrom the balance of payment exposure to foreign exchange and interest rate risk, to credit derivatives and other exotic options, futures, and swaps for mitigating and transferring risk, this book provides a simple yet comprehensive analysis of complex derivatives pricing and their application in risk management. The risk posed by foreign exchange transactions stems from the volatility of the exchange rate, the volatility of the interest rates, and factors unique to individual companies which are interrelated. To protect and hedge against adverse currency and interest rate changes, multinational corporations need to take concrete steps for mitigating these risks.\u003c\/p\u003e \u003cp\u003e\u003ci\u003eManaging Global Financial and Foreign Exchange Rate Risk\u003c\/i\u003e offers a thorough treatment of price, foreign currency, and interest rate risk management practices of multinational corporations in a dynamic global economy. It lays out the pros and cons of various hedging instruments, as well as the economic cost benefit analysis of alternative hedging vehicles. Written in a detailed yet user–friendly manner, this resource provides treasurers and other financial managers with the tools they need to manage their various exposures to credit, price, and foreign exchange risk.\u003c\/p\u003e \u003cp\u003e\u003ci\u003eManaging Global Financial and Foreign Exchange Rate Risk\u003c\/i\u003e covers various swaps in this geometrically growing field with notional principal in excess of $120 trillion. From caplet and corridors to call and put swaptions this book covers the micro structure of the swaps, options, futures, and foreign exchange markets. From credit default swap and transfer and convertibility options to asset swap switch and weather derivatives this book illustrates their simple pricing and application. To show real-world examples, each chapter includes a case study highlighting a specific problem, as well as a set of steps to solve it. Numerous charts accompanied with actual Wall Street figures provide the reader with the opportunity to comprehend and appreciate the role and function of derivatives, which are often misunderstood in the financial market.\u003c\/p\u003e \u003cp\u003eThis detailed resource will guide the individual, government and multinational corporations safely through the maze of various exposures. A must-read for treasures, controllers, money mangers, portfolio managers, security analyst and academics, \u003ci\u003eManaging Global Financial and Foreign Exchange Rate Risk\u003c\/i\u003e represents an important collection of up-to-date risk management solutions.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eGhassem A. Homaifar\u003c\/b\u003e is a professor of financial economics at Middle Tennessee State University. He has Master of Science in Industrial Management from State University of New York at Stony Brook and PhD in Finance from University of Alabama in 1982. He is the author of numerous articles that have appeared in the \u003ci\u003eJournal of Risk and Insurance\u003c\/i\u003e, \u003ci\u003eJournal of Business Finance and Accounting\u003c\/i\u003e, \u003ci\u003eWeltwirtschsftliches Archiv Review of World Economics\u003c\/i\u003e, \u003ci\u003eAdvances in Futures and Options Research\u003c\/i\u003e,\u003ci\u003eApplied Financial Economics\u003c\/i\u003e, \u003ci\u003eApplied Economics\u003c\/i\u003e, \u003ci\u003eInternational Economics\u003c\/i\u003e, and \u003ci\u003eGlobal Finance Journal\u003c\/i\u003e.\u003c\/p\u003e\u003c\/font\u003e\u003c\/strong\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e\u003cp\u003ePreface xv\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Global Markets: Transactions and Risks 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSavings and Loans Problems 2\u003c\/p\u003e \u003cp\u003eAgency Problems 3\u003c\/p\u003e \u003cp\u003eTypes of Markets 5\u003c\/p\u003e \u003cp\u003eTypes of Transactions 7\u003c\/p\u003e \u003cp\u003eTypes of Risks 10\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Balance of Payments Exposure Management 15\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBalance of Payments as a Source and Use of Funds 17\u003c\/p\u003e \u003cp\u003eComponents of Balance of Payments 17\u003c\/p\u003e \u003cp\u003eCurrent Account and Economic Fundamentals 19\u003c\/p\u003e \u003cp\u003eCapital Account, Expectation, and Interest Rate 21\u003c\/p\u003e \u003cp\u003eU.S. Balance of Payments: Recent Evidence 21\u003c\/p\u003e \u003cp\u003eExposure Related to Capital Account 23\u003c\/p\u003e \u003cp\u003eExchange Rate Arrangements, Dollarization, and Peg 28\u003c\/p\u003e \u003cp\u003eManaging Balance of Payment Exposure in the Emerging Market Economies 32\u003c\/p\u003e \u003cp\u003eCase Study: Kairos Capital 33\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Foreign Exchange Rate Dynamics: Managing Exposure 39\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eForeign Exchange Markets 39\u003c\/p\u003e \u003cp\u003eForeign Exchange Transactions 39\u003c\/p\u003e \u003cp\u003eForeign Exchange Market Functions 45\u003c\/p\u003e \u003cp\u003eForeign Exchange Quotations 45\u003c\/p\u003e \u003cp\u003eCross-Exchange Rate 46\u003c\/p\u003e \u003cp\u003eBid and Offer Quotations in the Interbank Market 47\u003c\/p\u003e \u003cp\u003eArbitrage in the Foreign Exchange Market 47\u003c\/p\u003e \u003cp\u003eMajor Players in the Foreign Exchange Market 47\u003c\/p\u003e \u003cp\u003eSpeculative Transactions 50\u003c\/p\u003e \u003cp\u003eForeign Exchange Loss 50\u003c\/p\u003e \u003cp\u003eSettlement Risk 51\u003c\/p\u003e \u003cp\u003eSpot Rate and the Law of One Price 51\u003c\/p\u003e \u003cp\u003eBig Mac Index 52\u003c\/p\u003e \u003cp\u003eCentral Bank Intervention 54\u003c\/p\u003e \u003cp\u003eRelative Version of Purchasing Power Parity 56\u003c\/p\u003e \u003cp\u003eExchange Rate Pass-Through 59\u003c\/p\u003e \u003cp\u003eSpot Exchange Rate and Nominal Interest Rate 61\u003c\/p\u003e \u003cp\u003eForward Exchange Rate and Covered Interest Parity 62\u003c\/p\u003e \u003cp\u003eForward Premium or Discount for Selected Currencies 65\u003c\/p\u003e \u003cp\u003eInternational Parity Relationship 66\u003c\/p\u003e \u003cp\u003eReal Exchange Rate 66\u003c\/p\u003e \u003cp\u003eReal Exchange Rate and East Asian Currency Crisis 68\u003c\/p\u003e \u003cp\u003eCase Study: Real-World Furniture, Inc. 69\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Application of Options and Futures for Managing Exposure 75\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDeterminants of the Option Price (Premium) 75\u003c\/p\u003e \u003cp\u003eOptions Traded in Organized Exchanges 77\u003c\/p\u003e \u003cp\u003eSensitivity of Put and Call Price to Underlying Factors 79\u003c\/p\u003e \u003cp\u003eFunctions of Options and Futures 82\u003c\/p\u003e \u003cp\u003eHedging Receivables Denominated in Foreign Currency 86\u003c\/p\u003e \u003cp\u003eSpeculation on the Futures Premium or Discount 91\u003c\/p\u003e \u003cp\u003eHedge Ratio 93\u003c\/p\u003e \u003cp\u003ePrice Discovery of Options and Futures 95\u003c\/p\u003e \u003cp\u003eRegulatory Arbitrage 96\u003c\/p\u003e \u003cp\u003eBinomial Option Pricing 96\u003c\/p\u003e \u003cp\u003eHedged Portfolio 99\u003c\/p\u003e \u003cp\u003eDerivatives Application in Practice 100\u003c\/p\u003e \u003cp\u003eSynthetic Forward Contract 101\u003c\/p\u003e \u003cp\u003eCase Study: Applications of Futures Contracts in Portfolio Hedging 102\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Principles of Futures: Pricing and Applications 107\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCost of Carry 107\u003c\/p\u003e \u003cp\u003eStock Index Futures 108\u003c\/p\u003e \u003cp\u003eIndex Arbitrage 109\u003c\/p\u003e \u003cp\u003ePortfolio Insurance 113\u003c\/p\u003e \u003cp\u003eHedging with Stock Index Futures Options 115\u003c\/p\u003e \u003cp\u003eBasis Risk 119\u003c\/p\u003e \u003cp\u003eChanging the Beta of the Portfolio with Futures 120\u003c\/p\u003e \u003cp\u003eAnticipatory Hedge with Stock Index Futures 122\u003c\/p\u003e \u003cp\u003eCase Study: Competition for Safeway, PLC 123\u003c\/p\u003e \u003cp\u003eManaging Exposure of an Individual Stock 124\u003c\/p\u003e \u003cp\u003eCurrency Futures 124\u003c\/p\u003e \u003cp\u003eHedging with Currency Futures 126\u003c\/p\u003e \u003cp\u003eAnticipatory Hedging of Weakening Currency 128\u003c\/p\u003e \u003cp\u003eRolling Over the Futures Hedge 129\u003c\/p\u003e \u003cp\u003eMarking to Market and Margin 131\u003c\/p\u003e \u003cp\u003eCommodity Futures 132\u003c\/p\u003e \u003cp\u003eSpread Position 133\u003c\/p\u003e \u003cp\u003eHedging with Commodities Futures 134\u003c\/p\u003e \u003cp\u003eEmpirical Evidence: Forward and Future Prices 138\u003c\/p\u003e \u003cp\u003eCase Study: Chockletto International Hedging 140\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Interest Rate Futures: Pricing and Applications 143\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTreasury Bills Futures 144\u003c\/p\u003e \u003cp\u003eSpot Rate 144\u003c\/p\u003e \u003cp\u003eForward Rate 146\u003c\/p\u003e \u003cp\u003eDeterminants of the Shape of the Term Structure of Interest Rates 148\u003c\/p\u003e \u003cp\u003eApproximate Duration 154\u003c\/p\u003e \u003cp\u003ePricing Treasury Bill Futures 155\u003c\/p\u003e \u003cp\u003eEurodollar Futures 156\u003c\/p\u003e \u003cp\u003eTreasury Notes Futures 158\u003c\/p\u003e \u003cp\u003eTreasury Bond Futures 160\u003c\/p\u003e \u003cp\u003eConversion Factor 162\u003c\/p\u003e \u003cp\u003eArbitrage in the Interest Rates Futures Market 165\u003c\/p\u003e \u003cp\u003ePricing Synthetic Futures or Forward 165\u003c\/p\u003e \u003cp\u003eHedging with Futures: Duration-Based Approach 168\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Swaps 177\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eInterest Rate Swaps 178\u003c\/p\u003e \u003cp\u003eForward Rate Agreement 178\u003c\/p\u003e \u003cp\u003eInterest Rate Conventions 181\u003c\/p\u003e \u003cp\u003eStripes of Forward Rate Agreements 181\u003c\/p\u003e \u003cp\u003eMotivations for Swaps 183\u003c\/p\u003e \u003cp\u003eSwaps Due to Comparative Advantage 185\u003c\/p\u003e \u003cp\u003eSwap Valuation 188\u003c\/p\u003e \u003cp\u003eInterest Rate Caps, Floors, Collars, and Corridors 190\u003c\/p\u003e \u003cp\u003eVolatility of Interest Rates 198\u003c\/p\u003e \u003cp\u003eSwaptions 200\u003c\/p\u003e \u003cp\u003eCallable Swap 201\u003c\/p\u003e \u003cp\u003ePutable Swap 202\u003c\/p\u003e \u003cp\u003eWarehousing Swap 203\u003c\/p\u003e \u003cp\u003eSwaps Risks 203\u003c\/p\u003e \u003cp\u003eExotic Swaps 206\u003c\/p\u003e \u003cp\u003eCurrency Swaps 207\u003c\/p\u003e \u003cp\u003eBreak-Even Analysis of Swap and Refinancing 211\u003c\/p\u003e \u003cp\u003eOptions Embedded in Currency Swaps 212\u003c\/p\u003e \u003cp\u003eThree-Way Swaps 213\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Translation, Transaction, and Operating Exposure 217\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTranslation Exposure 217\u003c\/p\u003e \u003cp\u003eCase Study: Accounting Exposure 220\u003c\/p\u003e \u003cp\u003eFunctional Currency 222\u003c\/p\u003e \u003cp\u003eManaging Translation Exposure 223\u003c\/p\u003e \u003cp\u003eBalance Sheet Hedging 223\u003c\/p\u003e \u003cp\u003eTransaction Exposure 224\u003c\/p\u003e \u003cp\u003eOperating Exposure 224\u003c\/p\u003e \u003cp\u003eHedging in Practice: Nike and DuPont 225\u003c\/p\u003e \u003cp\u003eExposure Netting 226\u003c\/p\u003e \u003cp\u003eForward Hedging: Example 226\u003c\/p\u003e \u003cp\u003eMoney Market Hedge 228\u003c\/p\u003e \u003cp\u003eHedging with Futures 231\u003c\/p\u003e \u003cp\u003eOption Hedging 233\u003c\/p\u003e \u003cp\u003eValue at Risk 235\u003c\/p\u003e \u003cp\u003eTwo Assets Portfolio 237\u003c\/p\u003e \u003cp\u003eLufthansa Buys Aircraft from Boeing 238\u003c\/p\u003e \u003cp\u003eManaging Operating Exposure 243\u003c\/p\u003e \u003cp\u003eFixed for Fixed Currency and Interest\u003c\/p\u003e \u003cp\u003eRate Swaps 249\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Debt, Equity, and Other Synthetic Structures 253\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eInverse Floater 253\u003c\/p\u003e \u003cp\u003eCreating a Synthetic Fixed Rate 256\u003c\/p\u003e \u003cp\u003eSynthetic Structures 258\u003c\/p\u003e \u003cp\u003eMortgage- and Asset-backed Derivatives 259\u003c\/p\u003e \u003cp\u003ePrepayment Risks 259\u003c\/p\u003e \u003cp\u003eSequential-Pay Collateralized Mortgage Obligations 261\u003c\/p\u003e \u003cp\u003eInterest Only and Principal Only 261\u003c\/p\u003e \u003cp\u003eEquity-Linked Debt 263\u003c\/p\u003e \u003cp\u003eZero Coupon Bond Linked to Goldman Sachs Commodity Index 264\u003c\/p\u003e \u003cp\u003eGlobal Diversification with Swaps 265\u003c\/p\u003e \u003cp\u003eCatastrophe Bonds 266\u003c\/p\u003e \u003cp\u003eLiability Management with Derivatives 266\u003c\/p\u003e \u003cp\u003eSpread on Treasury Yield Curve 275\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Options on Futures 279\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSpreads 281\u003c\/p\u003e \u003cp\u003eBull Spreads 281\u003c\/p\u003e \u003cp\u003eBear Spreads 283\u003c\/p\u003e \u003cp\u003eButterfly Spreads 284\u003c\/p\u003e \u003cp\u003eBox Spreads 285\u003c\/p\u003e \u003cp\u003eLong Straddle 288\u003c\/p\u003e \u003cp\u003eShort Straddle 289\u003c\/p\u003e \u003cp\u003eCalendar Spread 290\u003c\/p\u003e \u003cp\u003eStrips 292\u003c\/p\u003e \u003cp\u003eStraps 294\u003c\/p\u003e \u003cp\u003ePrice and Yield Volatility 296\u003c\/p\u003e \u003cp\u003eSpread Trades on Treasury Curves 297\u003c\/p\u003e \u003cp\u003eExotic Options 301\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Credit Derivatives: Pricing and Applications 307\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCredit Derivatives Products 308\u003c\/p\u003e \u003cp\u003eCredit Event\/Default Swap 309\u003c\/p\u003e \u003cp\u003ePricing Credit Default Swap 312\u003c\/p\u003e \u003cp\u003eUnwinding and Assignability of Credit Default Swaps 315\u003c\/p\u003e \u003cp\u003eDefault Probability 318\u003c\/p\u003e \u003cp\u003eBreak-Even High-Yield Bonds 320\u003c\/p\u003e \u003cp\u003eDefault Risk\/Return 321\u003c\/p\u003e \u003cp\u003eCreating Synthetic Assets 321\u003c\/p\u003e \u003cp\u003eSynthetic Credit Default Swaps 323\u003c\/p\u003e \u003cp\u003eCredit Default Swap Applications 323\u003c\/p\u003e \u003cp\u003eRestructuring 324\u003c\/p\u003e \u003cp\u003eCredit-Linked Notes 326\u003c\/p\u003e \u003cp\u003eSynthetic Collateralized Loan Obligations 327\u003c\/p\u003e \u003cp\u003eObjectives of Structuring Collateralized Loan Obligations 329\u003c\/p\u003e \u003cp\u003eSynthetic Collateralized Loan Obligations 329\u003c\/p\u003e \u003cp\u003eSynthetic Arbitrage Collateralized Loan Obligations 331\u003c\/p\u003e \u003cp\u003eSynthetic Balance Sheet Collateralized Loan Obligations 332\u003c\/p\u003e \u003cp\u003eCapital Adequacy Requirements 333\u003c\/p\u003e \u003cp\u003eCredit Exposure Method 334\u003c\/p\u003e \u003cp\u003eTotal Return Swaps 335\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Credit and Other Exotic Derivatives 341\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCredit Spread Forward 342\u003c\/p\u003e \u003cp\u003eCredit Spread Option 342\u003c\/p\u003e \u003cp\u003eAsset Swap Switch 344\u003c\/p\u003e \u003cp\u003eCallable Step-ups 347\u003c\/p\u003e \u003cp\u003eTransfer and Convertibility Protection 348\u003c\/p\u003e \u003cp\u003ePricing Transfer and Convertibility Protection 353\u003c\/p\u003e \u003cp\u003eSpeculative Capital 354\u003c\/p\u003e \u003cp\u003eEmerging Market Debts and Brady Bonds 354\u003c\/p\u003e \u003cp\u003eInternational Swaps and Derivatives Association Master Agreement 356\u003c\/p\u003e \u003cp\u003eWeather Derivatives 357\u003c\/p\u003e \u003cp\u003eWeather Derivatives Market 358\u003c\/p\u003e \u003cp\u003eExchange-Traded Weather Derivatives 359\u003c\/p\u003e \u003cp\u003eCME Futures 360\u003c\/p\u003e \u003cp\u003eCME Options 362\u003c\/p\u003e \u003cp\u003eSwaps 363\u003c\/p\u003e \u003cp\u003eReferences 365\u003c\/p\u003e \u003cp\u003eIndex 373\u003c\/p\u003e\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003eSubject Areas: Finance \u0026amp; accounting [\u003ca title=\"See our other books on Finance \u0026amp; accounting\" href=\"https:\/\/freshlyprintedbooks.co.uk\/search?q=%22Finance%20\u0026amp;%20accounting%20%5BKF%5D%22\"\u003eKF\u003c\/a\u003e]\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\r\n\u003c\/font\u003e","brand":"Wiley","offers":[{"title":"Brand New","offer_id":52286381195544,"sku":"9780471281153","price":37.77,"currency_code":"GBP","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0730\/2037\/5320\/files\/9780471281153_126894.jpg?v=1781550897","url":"https:\/\/freshlyprintedbooks.co.uk\/products\/managing-global-financial-and-foreign-exchange-rate-risk-hardback-9780471281153","provider":"Freshly Printed Books","version":"1.0","type":"link"}