國際財(cái)務(wù)管理課后習(xí)題答案chapter6

1、IM1CHAPTER6INTERNATIONALPARITYRELATIONSHIPSSUGGESTEDANSWERSSOLUTIONSTOENDOFCHAPTERQUESTIONSPROBLEMSQUESTIONS1.Giveafulldefinitionofarbitrage.Answer:Arbitragecanbedefinedastheactofsimultaneouslybuyingsellingthesameequival

2、entassetscommoditiesfthepurposeofmakingcertainguaranteedprofits.2.Discusstheimplicationsoftheinterestrateparityftheexchangeratedetermination.Answer:Assumingthatthefwardexchangerateisroughlyanunbiasedpredictofthefuturespo

3、trateIRPcanbewrittenas:S=[(1I￡)(1I$)]E[St1?It].TheexchangerateisthusdeterminedbytherelativeinterestratestheexpectedfuturespotrateconditionalonalltheavailableinfmationItasofthepresenttime.Onethuscansaythatexpectationissel

4、ffulfilling.Sincetheinfmationsetwillbecontinuouslyupdatedasnewshitthemarkettheexchangeratewillexhibitahighlydynamicrombehavi.3.Explaintheconditionsunderwhichthefwardexchangeratewillbeanunbiasedpredictofthefuturespotexcha

5、ngerate.Answer:Thefwardexchangeratewillbeanunbiasedpredictofthefuturespotrateif(I)theriskpremiumisinsignificant(ii)feignexchangemarketsareinfmationallyefficient.4.Explainthepurchasingpowerparityboththeabsoluterelativever

6、sions.WhatcausesthedeviationsfromthepurchasingpowerparityIM38.Explaintheromwalkmodelfexchangeratefecasting.CanitbeconsistentwiththetechnicalanalysisAnswer:Theromwalkmodelpredictsthatthecurrentexchangeratewillbethebestpre

7、dictofthefutureexchangerate.Animplicationofthemodelisthatpasthistyoftheexchangerateisofnovalueinpredictingfutureexchangerate.Themodelthusisinconsistentwiththetechnicalanalysiswhichtriestoutilizepasthistyinpredictingthefu

8、tureexchangerate.9.Deriveexplainthemoaryapproachtoexchangeratedetermination.Answer:ThemoaryapproachisassociatedwiththeChicagoSchoolofEconomics.Itisbasedontwotes:purchasingpowerparitythequantitytheyofmoney.Combingthesetwo

9、theiesallowsfstatingsaythe$￡spotexchangerateas:S($￡)=(M$M￡)(V$V￡)(y￡y$)whereMdenotesthemoneysupplyVthevelocityofmoneyythenationalaggregateoutput.Thetheyholdsthatwhatmattersinexchangeratedeterminationare:1.Therelativemone

10、ysupply2.Therelativevelocitiesofmonies3.Therelativenationaloutputs.10.CFAquestion:1997Level3.A.Explainthefollowingthreeconceptsofpurchasingpowerparity(PPP):a.Thelawofoneprice.b.AbsolutePPP.c.RelativePPP.B.Evaluatetheusef

11、ulnessofrelativePPPinpredictingmovementsinfeignexchangerateson:a.Shttermbasis(fexamplethreemonths)b.Longtermbasis(fexamplesixyears)Answer:A.a.Thelawofoneprice(LOP)referstotheinternationalarbitrageconditionfthestardconsum