superstar是什么意思国际金融期末复习资料

2021年1月19日发(作者：追随)

1
. Arbitrage
Definition: The purchase and sale of something in another market to take
advantage
of
price
differentials
for
the
purpose
of
making
guaranteed
profit.
OR
The purchase of something in one market for immediate resale in another
to profit from a
price discrepancy. (2’)

Example: Free answer (3’)

2. Derivative
Definition:
Derivative
is
an
investment
whose
value
today
or
at
some
future date is derived entirely from the value of other assets known as the
underlying assets or initiative financial asse
ts. (2’)

Example: Free answer (3’)

3. PPP Theory
Definition:
The
PPP
(purchasing
power
parity)
theory
states
that
given
relatively
efficient
markets,
the
price
of
a
“basket
of
goods”
should
be
roughly
equivalent
in
each
country,
because
of
the
Law
of
One
Price.
(Therefore,
the
exchange
rate
between
two
countries
should
equal
the
ratio of the two countries’ price levels.) (2’)

Example: Free answer (3’)

4. Option
Definition:
Option
is
a
contract
giving
the
buyer
the
right,
but
not
the
obligation, to buy or sell a specific amount of currency or other assets at a
specific exchange rate on or before a specified future date. (2’)

Example: Free answer (3’)

5. Pegged exchange rate
Definition:
A
pegged
exchange
rate
means
the
value
of
the
currency
is
fixed relative to a reference currency, such as the US dollar, and then the
exchange rate between that currency and other currencies is determined
by the reference currency exchange rate. (2’)

Example: Free answer (3’)

6. Currency crisis
Definition:
A
currency
crisis
occurs
when
a
speculative
attack
on
the
exchange value of a currency results in a sharp depreciation in the value
of
the
currency,
or
forces
authorities
to
expend
large
volumes
of
international currency reserves and sharply increase interest rates in order
to
defend prevailing exchange rates. (2’)

Example: Free answer (3’)













(5%)
1. Speculation
Definition:
It involves short- term movement of funds from one currency
to another in hopes of profiting from shifts in exchange rates or assets
’

prices. It can be bullish and bearish. (2
’
)
Example:
Free answer (3
’
)
2. Hedge
Definition:
Hedge is an approach designed to reduce or offset a possible
risk, i.e., cover the risk. (2
’
)
Example:
Free answer (3
’
)
3. International Fisher Effect
Definition:
“Fisher
-
open”
st
ates
that
for
any
two
countries,
the
future
spot rate should move in
an amount equal
to, but in the
opposite direction
from,
the
difference
in
nominal
interest
rates
between
two
countries.
A
future

spot rate of a currency with a lower interest rate would appreciate
in the long run. (2
’
)
Example:
Free answer (3
’
)
4. Future contract
Definition:
A future contract is a standardized forward contract between
two parties where one of the parties commits to sell and the other to buy a
stipulated
quantity
of
a
security
or
an
index
at
an
agreed
price
on
or
before a given date in the future. (2
’
)
Example:
Free answer (3
’
)
5. Bretton Woods System
Definition:
Under the Bretton Woods system, the U.S. dollar was pegged
to
gold
at
$$35
per
ounce
and
other
currencies
were
pegged
to
the
U.S.
dollar. (2
’
)