International Financial Operations: Arbitrage, Hedging, Speculation, Financing and Investment (Finance and Capital Markets Series)

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