International financial operation
1477 mots
6 pages
International financial operations Chapter 1 – The foreign exchange-> Foreign exchange rates
-> Participants
-> Organization
-> Theory of PPP
Chapter 2 – Hedging foreign exchange risk with financial derivatives
-> Currency swap
-> Forward exchange
-> Currency options
-> COFACE guarantee
-> Foreign exchange position
Chapter 3 – Hedging interest rate risk
-> Interest rate swap
-> FRA
-> CAP
-> Floor
-> Colla
Glossary/ vocabulary
- Anchor currency: Is a currency used by the central banks to establish reserves of exchange.
- Appreciation: determinate and judge the value of something.
- Asset: are economics resources owned by a company. It permits to estimate the value of the company and list what it possesses. Assets are listed on a firm's balance sheet and include tangible items such as inventories, equipment, and real estate as well as intangible items such as property rights or goodwill.
- Balance sheet: is a image of the heritage of the company which permits to realize an evaluation of company, and more exactly to know after reprocessing how much it costs and if it is reliable. A company balance sheet has three parts: assets, liabilities and ownership equity. The balance sheet is the only statement which applies to a single point in time.
- Basis point: indicate in economic language a hundredth of percentage. This expression has the advantage of simplifying the discussion on the variations of interest rate. It represents the minimal Unit on the market of the rates. One basis point is equivalent to 0.01% (1/100th of a percent) or 0.0001 in decimal form. In most cases, it refers to changes in interest rates and bond yields.
- Bretton Woods systems: draws the conclusions from the period from between two-wars marked by an absence of international monetary co-operation in term of foreign exchange rate which had resulted in successive devaluations of the principal currencies of the developed countries engaged in a true