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Week 2 Exchange Rates and Basic Concepts, Markets and Arbitrage - Coggle…
Week 2 Exchange Rates and Basic Concepts, Markets and Arbitrage
International Price Effects
Exchange Rate Essentials
Defining the Exchange Rate
Appreciations and Depreciations
Multilateral Exchange Rates
Types of exchange rates and exchange rate contracts
Forex Market (FX Market)
The Spot Contract
Transaction Costs
Derivatives
Private Actors
Government Actions
Arbitrage
Arbitrage and Spot Exchange Rates
A simplified calculation and variant interpretation of the UIP
Arbitrage and Cross Rates Triangular:
Cross Rates and Vehicle Currencies
Interest rate parity conditions
Riskless Arbitrage: Covered Interest Parity