currency - economics

[stellacastella]

I am stuck on economics. Especially currency calculations. It seems more difficult than before.
And why am I stuck on currency? I mean why is that???

 

[S2000magician]

I’ve written a few articles that may be of some help:

• Covered Interest Rate Parity: http://financialexamhelp123.com/covered-interest-rate-parity-irp-pricing...
• Triangular Arbitrage: http://financialexamhelp123.com/covered-interest-rate-parity-irp-pricing...
• Mark-to-Market Value of a Currency Forward: http://financialexamhelp123.com/mark-to-market-value-of-a-currency-forwa...
• Pricing Currency Forwards: http://financialexamhelp123.com/pricing-currency-forwards/
• Valuing Currency Forwards: http://financialexamhelp123.com/valuing-currency-forwards/
• Derivation of the Currency Forward Valuation Formula: http://financialexamhelp123.com/valuing-a-currency-forward-whence-came-t...

 

[stellacastella]

thanks a lot. I can’t even explain what I don’t know about currency right now.

 

[S2000magician]

My pleasure.

 

[Anand Singh]

Foreign exchange is difficult. I have started with it and already started to feel the pain. Solving problems might clear out the concepts.
How much have you done till now?

 

[hei.so]

@S2000 - oh wow, I’ve been on that site. Good stuff. Didn’t know you wrote those articles.
@Stella - Do you have a specific question? I’m feeling overwhelmed with quant and econ as well. I’m going in order of the books and I hope other topics such as equity gets a bit easier.
I’m trying to link what I learned in L1 and university with L2. I think what is so hard for me is that the book uses different variables to explain concepts that are exactly the same. For example, triangular arbitrage is very similar to a money market hedge.

 

[Ramos4rm]

hei.so wrote:
@S2000 - oh wow, I’ve been on that site. Good stuff. Didn’t know you wrote those articles.
@Stella - Do you have a specific question? I’m feeling overwhelmed with quant and econ as well. I’m going in order of the books and I hope other topics such as equity gets a bit easier.
I’m trying to link what I learned in L1 and university with L2. I think what is so hard for me is that the book uses different variables to explain concepts that are exactly the same. For example, triangular arbitrage is very similar to a money market hedge.

Personally, I think this is a bad idea…use the L2 books only or you will confuse yourself…it’s all in there and that is what you will be tested on.

 

[S2000magician]

hei.so wroteS2000 - oh wow, I’ve been on that site. Good stuff. Didn’t know you wrote those articles.

Glad to have been of some small assistance.

 

[stellacastella]

I read the topic 3 times, understand the first half, and need to do the second half. I think I need to do practice questions and a lot of them.

 

[jyk026]

For the love of god can someone show me a timeline of events for ex.3 question 2? Im not understanding the exchange when the dealer wants to roll forward another 6 months…. Wi!hsBFrwmjbfmiuzeuWfbFe!kewUFblIWUbvil