This report discusses the impact of foreign exchange risk, purchasing power parity, and international Fisher effect on international investors. It also evaluates how derivatives could be used to protect against the failure of purchasing power parity and international Fisher effect. The report includes a literature review, evidence and sources, and a conclusion.

International Finance Project

Prepare a course project on a chosen topic in International Finance, including an introduction, significance of the issue, literature review, evidence and data sources, conclusion, and references.

Report analyzes foreign exchange risk, purchasing power parity, and international Fisher effect for investors, with insights on derivative usage.

International Financial Management: Purchasing Power Parity and Foreign Exchange Risk

Derivatives

This report evaluates the use of derivatives contracts such as forward contract, future contract, call option and put options against the purchasing power parity and international fisher effect. Learn how to use these derivatives to hedge foreign exchange risk and maintain stable purchasing power parity.

Laguna State Polytechnic University

Finance

Calculus and Analysis

Using Derivatives to Hedge Foreign Exchange Risk and Maintain Stable Purchasing Power Parity

This article explains why Purchasing Power Parity and Internal Fishers Effect in theory makes derivates unnecessary. It discusses the impact of currency valuation, carry trades, and exchange rate risk.

Economics

Explaining why Purchasing Power Parity and Internal Fishers Effect in theory makes derivates unnecessary

International Finance Purchasing Power Parity (PPPT) 2 International Fisher’s Effect (IFE) (Fisher-open) 2 Forward contract (derivative instrument) 4 Futures contract (derivative instrument) 4 Options 5 Swap (derivative instrument) 6 Interest Rate Derivatives (derivative instrument) 6 Forward rate agreement (FRA) (derivative agreement) 6 Money Market Hedge 6 References 8 Theory of Purchasing Power Parity (PPPT) As per this theory,

Political Science

Theory of Purchasing Power Parity (PPPT)

Theory

This study evaluates the PPP and IFE in international financial management and how derivatives can be used to manage risks. It covers the relationship between inflation and exchange rate, the role of derivatives in risk management, and the impact of exchange rate fluctuations on investments. The subject is International Financial Management, and the course code and college/university are not mentioned.

Hartpury University and Hartpury College

PPP and IFE in International Financial Management

This article discusses the relationship between International Fisher Effect (IFE), Purchasing Power Parity (PPP) and derivatives in International Financial Management. It explains how PPP and IFE in theory make derivatives unnecessary and evaluates the differing ways in which derivatives can protect against the failing of IFE and PPP. The article also discusses the use of forward, future, option and swaps contracts as derivative instruments to minimize the negative impact of currency volatility. The subject is relevant to courses in finance, economics and international business.

International Financial Management: PPP, IFE and Derivatives

MGMT2023 - In this assignment, we will discuss&nbsp;International Finance Management&nbsp;under which we have covered returns from Investments in Argentina,&nbsp;Carry Trade,&nbsp;Triangular Arbitrage,&nbsp;Implication of Triangular Arbitrage,&nbsp;&nbsp;Inflation and Forward Rate, Benefits and Cost of range forward or collar arrangements,&nbsp;Non-Market versus Market Hedging.

International Financial Management: Purchasing Power Parity and Foreign Exchange Risk

About This Document

Using Derivatives to Hedge Foreign Exchange Risk and Maintain Stable Purchasing Power Parity

Explaining why Purchasing Power Parity and Internal Fishers Effect in theory makes derivates unnecessary

Theory of Purchasing Power Parity (PPPT)

PPP and IFE in International Financial Management

International Financial Management: PPP, IFE and Derivatives

MGMT2023 - Assignment on International Finance Management

International Financial Management: Purchasing Power Parity and Foreign Exchange Risk

About This Document

Using Derivatives to Hedge Foreign Exchange Risk and Maintain Stable Purchasing Power Paritylg...

Explaining why Purchasing Power Parity and Internal Fishers Effect in theory makes derivates unnecessarylg...

Theory of Purchasing Power Parity (PPPT)lg...

PPP and IFE in International Financial Managementlg...

International Financial Management: PPP, IFE and Derivativeslg...

MGMT2023 - Assignment on International Finance Managementlg...

Using Derivatives to Hedge Foreign Exchange Risk and Maintain Stable Purchasing Power Parity

Explaining why Purchasing Power Parity and Internal Fishers Effect in theory makes derivates unnecessary

Theory of Purchasing Power Parity (PPPT)

PPP and IFE in International Financial Management

International Financial Management: PPP, IFE and Derivatives

MGMT2023 - Assignment on International Finance Management