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Informationen zum Autor SHANI SHAMAH has spent over twenty years in the financial market. Her previous book, A Foreign Exchange Primer , is proving to be a great success. Klappentext A quick and concise guide to currency optionsAn understanding of currency options is essential for those working in investment and foreign exchange. A Currency Options Primer sets out to give readers a clear guide to how the currency option market functions, offering practical advice on mastering the necessary components and concepts for fully understanding the workings of this market.Shani Shamah (London, UK) has spent over 20 years in the financial securities market. She has worked at Banque Paribas; Chase Manhattan Bank NA; Chemical Bank, London; and Numura Bank, London. Zusammenfassung The pressure to maintain currency parity has led to the breakdown of many exchange rate mechanisms, and has forced the need for active foreign exchange hedging decisions to prevent the erosion of profit margins. Today, an understanding of currency options is essential for those working in investment and foreign exchange. Inhaltsverzeichnis Disclaimer xi 1 Introduction 1 1.1 The forward foreign exchange market 1 1.2 The currency options market 1 1.3 The alternatives to currency options 2 1.4 The users 2 1.5 Whose domain? 2 PART I MARKET OVERVIEW 3 2 The Foreign Exchange Market 5 2.1 Twenty-four-hour global market 5 2.2 Value terms 5 2.3 Coffee houses 6 2.4 Spot and forward market 6 2.5 Alternative markets 7 2.6 Currency options 7 2.7 Concluding remarks 8 3 A Brief History of the Market 9 3.1 The barter system 9 3.2 The introduction of coinage 9 3.3 The expanding British Empire 10 3.4 The gold standard 10 3.5 The Bretton Woods system 11 3.6 The International Monetary Fund and the World Bank 11 3.7 The dollar rules OK 12 3.8 Special drawing rights 12 3.9 A dollar problem 13 3.10 The Smithsonian agreement 13 3.11 The snake 13 3.12 The dirty float 13 3.13 The European Monetary System 14 3.14 The Exchange Rate Mechanism 14 3.15 The European Currency Unit 15 3.16 The Maastricht Treaty 15 3.17 The Treaty of Rome 15 3.18 Economic reform 16 3.19 A common monetary policy 16 3.20 A single currency 16 3.21 Currency options 18 3.22 Concluding remarks 20 4 Market Overview 21 4.1 Global market 21 4.2 No physical trading floor 21 4.3 A "perfect" market 21 4.4 The main instruments 22 4.5 Comparisons of options with spot and forwards 23 4.6 The dollar's role 24 4.7 Widely traded currency pairs 24 4.8 Concluding remarks 25 5 Major Participants 27 5.1 Governments 27 5.2 Banks 27 5.3 Brokering houses 29 5.4 International Monetary Market 29 5.5 Money managers 29 5.6 Corporations 29 5.7 Retail clients 29 5.8 Others 30 5.9 Speculators 30 5.10 Trade and financial flows 30 6 Roles Played 33 6.1 Market makers 33 6.2 Price takers 33 6.3 A number of roles 33 6.4 A number of roles - options 34 6.5 Concluding remarks 34 7 Purposes 35 7.1 Commercial transactions 35 7.2 Funding 35 7.3 Hedging 35 7.4 Portfolio investment 36 7.5 Personal 36 7.6 Market making 36 7.7 Transaction exposure 36 7.8 Translation exposure 37 7.9 Economic exposure 37 7.10 Concluding remarks 37 8 Applications of Currency Options 39 9 Users of Currency Options 41 9.1 Variety of reasons 41 9.1.1 Example 1 42 9.1.2 Example 2 43 9.1.3 Example...
