(2016-S1) - FINS3616 - Tutorial Slides - Week 02 - Introduction + FX Bas

7/26/2019 (2016-S1) - FINS3616 - Tutorial Slides - Week 02 - Introduction + FX Bas...

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Tutorial

Week 02Introduction to class, &

Exchange Rate Calculation Basics

B&H: Chapter 02

from BEKAERT & HODRICK International Financial Management (2E)


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FINS3616 Peter Kjeld Andersen (2016-S1)

4

YOUR TUTOR TUTOR IN CHARGE

Peter Kjeld Andersen

[email protected]
mailto:[email protected]:[email protected]


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5


FROM FIRST SEMESTER 2014s CATEI EVALUATIONS

The best features of this facilitator's / tutor's teaching were:

Tutor was on time

Funny sometimes

Spoke proper English

Sick slides

This tutors teaching in this course could be improved by:

Sleeping more regularly. He is a little intimidating at the best of times, but

when grumpy...

Needs to be friendlier with students.

Acted a bit too arrogantly at times.

Need to be more approachable by students.

less intimidation with his chest and beard and mohawk

Dying his mohawk RAINBOW!!!


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FROM 2015-S1S CATEI EVALUATIONS

The best features of this facilitator's / tutor's teaching were:

Telling rude students to shut up during class (definitely worked and was very

entertaining to watch the kid almost literally swallow his words)

Looks like Ragnar Lodbrok

Brutality to idiots who didnt raise their hands to speak

really really really really good tutorial slides omg - what is the point of a

lecture when I have these amazing tutorial slides?

A truly amazing feat of human hair growth aka The Petehawk, supplemented

by a healthy dose of arrogance, sarcasm, and inappropriate yet still financially

sensible examples which truly helped you to learn. Also his slides areexcellent. Almost as good as the mohawk. And the constantly putting people

down attitude.


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FROM 2015-S2S CATEI EVALUATIONS

This tutors teaching in this course could be improved by:

Less of a combative attitude. He is simultaneously

misogynistic in his use of inappropriate classroom

examples, which although offensive admittedly further

his teaching, and hypocritically embraces the negative

female stereotypes of being excessively emotional and

moody in hounding students with emails. One does not

need to look further for an example of structuralpatriarchy inflicting damage and confusion upon men


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ASSESSMENT DATE HOW MUCH

Tutorial Attendance,

Homework, &

Groupwork

Participation

Every week 10%

Midsemester

ExaminationWeek 7 (in lecture) 30%

Group Project Weeks 11 + 12 25%

Final Exam Exam Period 35%

9



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Class participation marks are designed for you to demonstrate that

you have prepared the assigned tutorial homework material prior

to class.

There will be new questions given to you in class, which you will

complete in your assignment groups. Doing these new questions in

a time-efficient manner will require you to have completed thehomework prior to class.

After an allotted amount of working time, groups will be chosen at

random to teach one of the questions to the rest of the class.

Everybody in the group must get up to present a portion of thegroups assigned question.

If you participate in every tutorial but are otherwise disruptive to

the class, or always on Facebook, or always on your phone dont

expect full participation grades. 10FINS3616 Peter Kjeld Andersen (2016-S1)


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LETS EGIN

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In FINS3616 we will write/quote exchange rates in the following manner:

You would read/interpret this exactly the same way as you would read

That is:

The cost to buy one AUD is USD0.9054.

The price you could sell one AUD for is USD0.9054

We use this method because it makes the more complex calculations we do later in

the subject more intuitive for you to understand.

In FINS1612 (and the newspaper & on Google Finance), it would be written as:


14

USD0.9054/AUD

USD0.9054/packet of chewing gum

AUD/USD0.9054


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Q. What is an appreciation of the dollar relative to the pound? What happens to

the dollar price of the pound in this situation?

A. An appreciation of the dollar relative to the pound means that it will take less

dollars to buy one pound.

Thus, the dollar price of the pound is now lower after the appreciation of the

dollar.

Lets say that was the original rate.

The question states that the USD has APPRECIATED relative to the GBP.

This means that, conversely, the GBP has depreciated relative to the USD.

i.e. each GBP is now able to buy less USD than before. So the new value may be something like

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Q. The exchange rate at the start of the year was . However, the

value of the USD has since then appreciated by 25% against the value of the

AUD. What is the current USD price of one AUD?

A. It is tempting to say that if the USD has appreciated by 25% against the AUD,

then the AUD has depreciated by 25% against the USD.

So that you could just work out the new price of an AUD by multiplying by 0.75

again, in which case you would getTHIS IS WRONG!!! (it doesnt work mathematically).

Lets take a look at why:

First, can be inverted to

If the USD appreciates 25% against the AUD, how many AUD can one USD

purchase?x (1 + 0.25) =

So what is the value if we convert back to the USD price of an AUD?

..which is the same as 1.00 DIVIDED by (1 + 0.25)

rather than multiplied by (1 - 0.25), which is incorrect

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Q. The Mexican peso has weakened considerably relative to the dollar, and you

are trying to decide whether this is a good time to invest in Mexico. Suppose

the current exchange rate of the Mexican peso relative to the U.S. dollar isMXN 9.5/USD. Your investment advisor at Goldman Sachs argues that the

peso will lose 15% of its value relative to the dollar over the next year. What

is Goldman Sachss forecast of the exchange rate in 1 year?

A. Although the Mexican peso is currently quoted as MXN 9.5/USD, this is theequivalent of USD 0.10526/MXN when we take the reciprocal.

If the value of the MXN falls by 15%, it will be worth:

USD 0.10526/MXN x (1 0.15) = USD 0.08947/MXN

This can be re-expressed as MXN 11.1765/USD when we take the reciprocal.

This is the same as MXN 9.5/USD divided by (1 15%).

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Note that the MXN 11.1765/USD answer is MORE than 15% bigger than the original MXN

9.500/USD exchange rate.

Remember, the currency that is appreciating will ALWAYS appreciate by a bigger

percentage than the magnitude of the percentage depreciation of the second currency.


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Q. Alumina Limited of Australia has called Mitsubishi UFJ Financial Group to get

its opinion about the Japanese yenAustralian dollar exchange rate.

The current rate is 67.72/A$, and Mitsubishi thinks the Australian dollar will

weaken by 5% over the next year. What is Mitsubishi UFJs forecast of the

future exchange rate?

A. If the Australian dollar weakens by 5% over the next year, it will take 5% fewer

Japanese yen to purchase the Australian dollar. Thus, the forecast is67.72/A$ x (1 0.05) = 64.334/A$

Ask yourself if the value of the YEN appreciates by 25% against the AUD, by what % would the AUD

depreciate against the YEN? What about 100%? What about 100,000,000,000%

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AUD%

1

%1

1YEN

125.01

1%2020.0

100.11

1%5050.0

1

000,000,000,11

1%999999.9999999999.0

There is an asymptote at100%, because an

exchange rate can never become negative.



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Q. Mississippi Mud Pies, Inc. needs to buy 1,000,000 Swiss francs (CHF) to pay its

Swiss chocolate supplier. Its banker quotes bidask rates of CHF1.3990/USD

CHF1.4000/USD. What will be the dollar cost of the CHF1,000,000?

A. How to break this down:

The company wants to buy CHF, which means theyre selling USD.

If theyre selling USD, theyll have to do that at the lower CHF/USD price,

which is the banks bid of CHF1.3990/$.

Remember the bank must make a profit on each USD from their

bid/ask. The bank WONT be generous and let you sell each USD to

them for the higher CHF1.4000 price.

If the company is purchasing CHF 1,000,000 at a price of CHF1.3990/USD,

how many USD do they pay?

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CHF 1,000,000

CHF1.3990/USD

1,000,000USD

1.3990


Cost in USD USD 714,796


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Q. If the Japanese yenU.S. dollar exchange rate is 104.30/$, and it takes 25.15

Thai bahts to purchase 1 dollar, what is the yen price of the baht?

A. To prevent triangular arbitrage, the direct quote of the yen price of the baht

(/THB) must equal the yen price of the dollar times the dollar price of the

baht (which is the reciprocal of the baht price of the dollar):

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SDTHB25.15/U

USDYEN104.30/THBYEN4.1471/



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How to tell if there is a triangular arbitrage profit and how to make it:

When you arrange the quotes as follows, the cross multiplication should

equal one

CASE 1: If it is less than 1, sell the currencies in the numerator to buy thecurrencies in the denominator of each quote.

Sell CAD 1.60 to buy USD 1.00.

Sell USD 1.00 and buy EUR 0.80.

Sell EUR 0.80 and buy CAD 2.00.

You now have CAD 0.4 more than when you started.

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CAD1.60 USD1.25 EUR0.5. . 1

USD EUR CADi e

CAD1.60 USD1.25 EUR0.4. .

USD EUR CADe g 0.8 i.e. 1

Because our arbitrage test < 1,

our % profits here could be

calculated quickly by taking the

reciprocal as follows:

(1 / 0.80) 1 = 0.25 = 25%



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How to tell if there is a triangular arbitrage profit and how to make it:

When you arrange the quotes as follows, the cross multiplication should

equal one

CASE 2: If it is greater than 1, sell the currencies in the denominator to buythe currencies in the numerator.

Sell USD 1.00 and buy CAD 1.60.

Sell CAD 1.60 and buy EUR 0.96.

Sell EUR 0.96 and buy USD 1.20.

You now have USD 0.2 more than when you started.

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CAD1.60 USD1.25 EUR0.5. . 1

USD EUR CADi e

CAD1.60 USD1.25 EUR0.6. .

USD EUR CADe g 1.2 i.e. 1

Because our arbitrage test > 1, our

% profits here could be calculated

quickly by subtracting 1.

1.2 1 = 0.2 = 20%



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Q. As a foreign exchange trader, you see the following quotes for Canadian

dollars (CAD), U.S. dollars (USD), and Mexican pesos (MXN):

USD0.7047/CAD MXN6.4390/CAD MXN8.7535/USD

Is there an arbitrage opportunity, and if so, how would you exploit it??

A. Flip the MXN/CAD quote and then arrange them to follow the rules

As it is less than 1, sell the currencies in the numerator to buy the currencies in

the denominator.

I. Sell USD 1.00 and buy CAD 1.4190.II. Sell CAD 1.419 and buy MXN 9.1372.

III. Sell MEX 9.1369 and buy USD 1.0438.

IV. You now have USD 0.0438 more than when you started.

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USD0.7047 CAD0.15530 MXN8.7535

CAD MXN USD 0.9580 i.e. < 1

Because our arbitrage test < 1,

our % profits here could be

calculated quickly by taking the

reciprocal as follows:

(1 / 0.9580) 1 = 0.0438



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USD 1.3007 YEN104.40

EUR USD

Q. Deutsche Bank quotes bidask rates of $1.3005/$1.3007/ and 104.30-

104.40/$. What would be Deutsche Banks direct asking price of yen per euro

(/)?

A. The direct asking price of yen per euro (/) is the price at which you the

customer will buy euros from (and sell yen to) the bank.

So first, identify the rates at which you can buy euros and sell yen against thedollar.

These are $1.3007/ and 104.40/$ respectivelynote that selling Yen is the same as buying $, hence the higher ask price per $

Then, create the cross rate:

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1.3007 YEN104.40

EUR

YEN135.79YEN135.79 / EUR

EUR



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Q. The following table contains the bid and ask rates for trading between the

Euro, the Japanese Yen, and the Australian Dollar:

Is there an arbitrage profit available? How did you arrive at this conclusion?

A. Method 1: Manually try going each way around the triangle

First direction (EUR -> YEN -> AUD -> EUR)

Start with EUR 1.00

Sell your EUR 1.00 at YEN 128.71/EUR to get YEN 128.71

Spend your YEN 128.71 to purchase AUD at YEN 92.52/AUD to get AUD 1.391159

Spend your AUD 1.391159 to purchase EUR at AUD 1.3915/EUR to get EUR 0.99975

Youve finished with LESS than the EUR 1.00 you started with. No arbitrage30


BID ASK

YEN 128.71/EUR YEN 128.74/EUR

YEN 92.50/AUD YEN 92.52/AUD

AUD 1.3912/EUR AUD 1.3915/EUR


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Q. The following table contains the bid and ask rates for trading between the

Euro, the Japanese Yen, and the Australian Dollar:

Is there an arbitrage profit available? How did you arrive at this conclusion?

A. Method 1: Manually try going each way around the triangle

Second direction (EUR -> AUD -> YEN -> EUR)

Start with EUR 1.00

Sell your EUR 1.00 at AUD 1.3912/EUR to get AUD 1.3912

Sell your AUD 1.3912 at YEN 92.50/AUD to get YEN 128.686

Spend your YEN 128.686 to purchase EUR at YEN 128.74/EUR to get EUR 0.99958

Youve finished with LESS than the EUR 1.00 you started with. No arbitrage again31


BID ASK

YEN 128.71/EUR YEN 128.74/EUR




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A. Method 2: Calculating an implied cross-rate bid/ask spread and comparing it

to the quoted market bid/ask spread.

Use the 1st and 3rd lines of the table to work out what the YEN cross-rates

SHOULD be:

If I was to buy one EUR using AUD, I would pay AUD 1.3915 to get it

If I was to sell one EUR using YEN, I would receive YEN 128.71

Therefore the effective calculated cross-exchange rate (BID) is:

If I was to buy one EUR using YEN, I would pay YEN 128.74 to get it

If I was to then sell that one EUR to get AUD, I would receive AUD 1.3912

Therefore the effective calculated cross-exchange rate (ASK) is:

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EUR/1.3915AUD

EUR/128.71YENAUD/92.4973YEN

EUR/1.3912AUD

EUR/128.74YENAUD/92.5388YEN


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QUOTED MARKET RATESBID ASK

YEN 92.5388/AUD

CALCULATED CROSS-RATESBID ASK

YEN 92.4973/AUD


BUYING each AUD at the

quoted market ask rate of YEN

92.52 each is cheaper than

buying it via the calculated

cross ask rate of YEN 92.5388

each.

Then SELLING each AUD at the

quoted market bid rate of YEN

92.50 is marginally better thanselling them at the calculated

cross bid rate of YEN 92.4973.

By selling them at the calculated cross bid rate, this

actually means using the two exchange rates that went

into calculating that cross rate: Using each AUD to buy EUR at AUD 1.3915/EUR

.then selling those EUR at YEN 128.71/EUR

Even though we are buying AUD via the cheapest method and selling it at

the highest price we can, were still paying more YEN per AUD than were

selling it for. Therefore, there are no arbitrage profits.


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QUOTED

MARKET

RATES

BID ASK


In order for there to be an arbitrage possible, youd need a situation like the above

where there is an ASK price that you can buy a currency for SMALLER than a BID

price that you can sell that same currency for.


CALCULATED

CROSS RATESBID ASK

i.e. In order for triangular arbitrage to be present when dealing with bid/ask

spreads, the two bid/ask spreads cannot overlap at all.


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Q. Illustrate the difference between direct and indirect quotes of an exchange

rate.

A. A direct quote for a GIVEN currency gives the price of one unit of the OTHER

currency in terms of the given currency. That is, in the form

GIVEN CURRENCY X.XXXX / OTHER CURRENCY.

e.g. AUD 1.3781/EUR is a direct quote for the AUD

An indirect quote for a GIVEN currency gives the price of one unit of the given

currency in terms of the other currency. That is, in the form

OTHER CURRENCY X.XXXX / GIVEN CURRENCY.

e.g. EUR 0.7256/AUD is an indirect quote for the AUD

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Given the following bid-ask spread: EUR 0.8316/AUD EUR 0.7661/AUD

Q. Is this a direct or indirect quote (and from whose viewpoint)?

This is an indirect quote from the Australian perspective, as the Bid > Ask.

Despite how this looks, remember that the quoting bank must still make a

profit from the bid/ask spread.

Instead of the bank buying the denominator currency from you (the

customer) at the Bid as per normal with direct quotations, with indirectquotations the bank is buying the numerator currency at the Bid.

The bank buys EUR 0.8316 from you for every one AUD it pays out to you at the Bid

Instead of the bank selling the denominator currency to you (the customer)

at the Ask as per normal with direct quotations, with indirect quotations

the bank is selling the numerator currency at the Ask. The bank sells EUR 0.7661 to you for every one AUD it collects from you at the Ask

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Given the following bid-ask spread: EUR 0.8316/AUD EUR 0.7661/AUD

Q. Convert the above rate to both direct and indirect quotation from the other

countrys perspective.

Alternatively, a direct quote from the Australian perspective would be:


Changing it to a direct quote from the Eurozone perspective, we get:

EUR 0.7661/AUD EUR 0.8316/AUD And so thus an indirect quote from the Eurozone perspective would give


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AUSTRALIAN perspective EUROZONE perspective

DIRECT AUD 1.2025/EUR AUD 1.3053/EUR EUR 0.7661/AUD EUR 0.8316/AUD

INDIRECT EUR 0.8316/AUD EUR 0.7661/AUD AUD 1.3053/EUR AUD 1.2025/EUR

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XXX Currency perspective YYY Currency perspective

DIRECT XXX/YYY: LHS < RHS YYY/XXX: LHS < RHS

INDIRECT YYY/XXX: LHS > RHS XXX/YYY: LHS > RHS

Always remember to FIRST look at whether the Bid is less than the Ask:

If Bid < Ask, its a Direct quote so the perspective currency is in the numerator.

If Bid > Ask, its an Indirect quote so the perspective currency is in the denominator.



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When the goal of a problem isnt to identify direct or indirect quotations, but

rather to use and apply those exchange rates to some other purpose (such as

triangular arbitrage, etc.), I personally never think about exchange rates interms of direct vs. indirect or bid vs. ask or buying vs. selling in order to

decide which rates to use at a given step of a calculation.

The bank ALWAYS is quoting you a spread from which THEY make a profit on

a round-trip transaction.

This is why I feel that the words bid and ask are unnecessary.

And they are probably a hindrance to you developing true intuitive learning of

the topic.

On the following slide note that I dont use the words buy or sell at all.

I personally identify the correct rate in terms of giving and getting.

The bank or dealer always gets more and gives less. Like a bad lover.

And you, the customer, always give more and get less. Like a chump.49



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HKD 5.1235/AUD HKD 5.0338/AUD and YEN 86.24/AUD YEN 84.71/AUD

Looking at the above exchange rates

A. If Ive got a bunch of AUD in my account and want to convert to HKD, at which rate will I beable to do that?

i. Will the bank give me 5.1235 HKD for each AUD that I give them?

ii. Or will the bank give me 5.0338 HKD for each AUD that I give them?

B. If Ive got a bunch of HKD in my account and want to convert to AUD, at which rate will I be

able to do that?

i. Will the bank require me to give them 5.1235 HKD for each AUD that I get fromthem?

ii. Or will the bank require me to give them 5.0338 HKD for each AUD that I get from

them?

C. If Ive got a bunch of YEN in my account and want to convert to AUD, at which rate will I be

able to do that?

i. Will the bank require me to give them 86.24 YEN for each AUD that I get from them?ii. Or will the bank require me to give them 84.71 YEN for each AUD that I get from

them?

D. If Ive got a bunch of AUD in my account and want to convert to YEN, at which rate will I be

able to do that?

i. Will the bank give me 86.24 YEN for each AUD that I give them?

ii. Or will the bank give me 84.71 YEN for each AUD that I give them? 50FINS3616 Peter Kjeld Andersen (2016-S1)


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Q. Given HKD 5.1235/AUD-HKD 5.0338/AUD & YEN 86.24/AUD-YEN 84.71/AUD

Calculate the equilibrium cross rate between the HKD and the Yen.

A. To answer this question, we need to find two cross rates:

1. The HKD../YEN rate at which we could sell HKD to the bank to buy YEN.

2. The HKD../YEN rate at which we could sell YEN to the bank to buy HKD.

As the AUD is in the denominator, its easier to think of what you (a customer) is doing with the AUD.

i.e. we buy AUD from the bank at the high price, and sell AUD to them at the low price.

To find the sell HKD / buy YEN rate, use the rates for doing those things against the AUD:

If Im selling HKD, Im simultaneously buying AUD.

And when I buy AUD from the bank, I pay the higher price: HKD 5.1235/AUD

If Im buying YEN, Im simultaneously selling AUD. When I sell AUD to the bank, I receive the lower price: YEN 84.71/AUD

So the sell HKD / buy YEN rate is HKD 5.1235 / YEN 84.71 = HKD 0.0604/YEN

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Q. Given HKD 5.1235/AUD-HKD 5.0338/AUD & YEN 86.24/AUD-YEN 84.71/AUD

Calculate the equilibrium cross rate between the HKD and the Yen.

A. To answer this question, we need to find two cross rates:

1. The HKD../YEN rate at which we could sell HKD to the bank to buy YEN.

2. The HKD../YEN rate at which we could sell YEN to the bank to buy HKD.

As the AUD is in the denominator, its easier to think of what you (a customer) is doing with the AUD.

i.e. we buy AUD from the bank at the high price, and sell AUD to them at the low price.

To find the buy HKD / sell YEN rate, use the rates for doing those things against the AUD:

If Im buying HKD, Im simultaneously selling AUD.

And when I sell AUD to the bank, I receive the lower price: HKD 5.0338/AUD

If Im selling YEN, Im simultaneously buying AUD. When I buy AUD from the bank, I pay the higher price: YEN 86.24/AUD

So the buy HKD / sell YEN rate is HKD 5.0338 / YEN 86.24 = HKD 0.0584/YEN

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If the market rate between Yen and HKD in Hong Kong is

HKD 0.0582/YEN - HKD 0.061/YEN

Q. is there an arbitrage opportunity for an Australian arbitrageur who has AUD1m under his/her disposal?

A. No, there is no arbitrage opportunity available.

If you were to purchase one YEN at the quoted market cross rate (and pay HKD

0.061) and sell it through the calculated cross rates from the previous question

(and receive HKD 0.0584), you would clearly make a loss for each YEN.

Similarly, if you were to purchase one YEN at the calculated cross rates (and

pay HKD 0.0604) and sell it through the quoted market rate (and receive HKD

0.0582), you would likewise make a loss on each YEN.

54FINS3616 Peter Kjeld Andersen (2016-S1)


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BID ASKCalculated CrossRates

HKD 0.0584/YEN HKD 0.0604/YEN

ASKQuoted Market Rates


BID

The two buying (i.e. ask) prices for the YEN are both higher than the

prices at which you could sell the YEN (i.e. bids).

Therefore, no arbitrage is possible.



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Q. Repeat part B. for a spread of HKD 0.062/YEN HKD 0.065/YEN.

Yes, there is an arbitrage opportunity available, if the appropriate transactionsare executed.

BID ASKCalculated Cross

Rates


ASKQuoted Market Rates


BID

Purchase YEN with HKD via the AUD using the calculated cross rate of HKD

0.0604/YEN.

Then sell YEN for HKD using the quoted cross rate of HKD 0.0620/YEN.

The three steps from a base of AUD 1m would be as follows:

I. Sell your AUD 1m at YEN 84.71/AUD = Receive YEN 84.71m

II. Sell YEN 84.71m at HKD 0.0620/YEN = Receive HKD 5.25202m

III. Sell HKD 5.25202m at HKD 5.1235/AUD = Receive AUD 1,025,084.41

Your profit is AUD 25,084.41

We multiplied

We divided


We multiplied


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Q. The biggest traders in the foreign exchange markets are ____.

a) commercial banks

b) corporations

c) government agencies

d) governments

e) individual investors

The answer is a)



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Q. Which one of the following features is not part of the interbank foreign

exchange market?

a) derivative securities such as foreign currency futures and options

b) trade in swaps and forward contracts

c) immediate exchanges of monies

d) non-strategic loans

e) none of the above

The answer is d)



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Q. S$/ArPeso = $0.35/ArPeso and SArPeso/Rand = ArPeso0.31/Rand. What is SRand/$?

a) Rand0.886/$

b) Rand1.129/$

c) Rand3.226/$

d) Rand3.459/$

e) Rand9.217/$

The answer is e)

USD/ZAR USD/ARS ARS/ZAR S S S

USD 0.35 ARS 0.31 USD 0.1085

ARS ZAR ZAR


ZAR/USD

USD/ZAR

1S

S

1ZAR 9.2166/USD

USD 0.1085/ZAR


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Q. What do the market makers in the currency markets provide?

a) insurance against default by the buyers

b) solvency

c) stability

d) liquidity

e) collateral

The answer is d)



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Q. Which one of the following firms dominates the foreign exchange markets?

a) No one firm dominates.

b) Deutsche Bank

c) UBS

d) Citigroup

e) Rio Tinto

The answer is a)



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Q. The foreign exchange desks of commercial banks typically make their profits

through ____.

a) arbitrage

b) government subsidies

c) investment banking

d) market making

e) speculation

The answer is d)



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Q. The spot rate is $1.00/ and the one-year spot rate is $1.10/. What is

percentage change in the dollar?

a) 10%

b) 9.1%

c) 0%

d) -9.1%

e) -10%

The answer is d)


$/ /

0 0

$/

$

1

$/

1

Start of Year: S S

E

$1.00/ 1.00/$

$1.10/nd of Year: S S 0.9091/$

/

0

$

/

1

$

$

0.9091/$

Ss 1

S

1

-0.090

1.0

909

0

1 9.

/

1

$

0 %


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THE EN

Documents

(2016-S1) - FINS3616 - Tutorial Slides - Week 02 - Introduction + FX Bas