MGCR 382 Lecture Notes - Lecture 7: Monetary Base, Libor, The Forward

• School: McGill University
• Department: Management Core
• Course: MGCR 382
• Professor: Donald Melville

Document Summary

Lecture 7 - september 26th, 2016 (fundamentals of multinational finance textbook, chapter 1) Appreciation / depreciation : appreciation - increase in value, depreciation - decrease in value. Change in exchange rate (calculation): (endingrate beginningrate) The forward premium / discount (calculation) : measures the annualized % difference between spot and forward rates forward spot forwardpremium / discount = Lecture 7, 8 - september 26th, 28th, 2016 (fundamentals of multinational finance textbook, chapter 1) The global financial marketplace: business involves the interaction of individuals and organizations for the exchange of products, services, and capital through markets, the global capital markets are the centre of these exchanges. London: however most major domestic financial centers construct their own interbank offered rates for local loan agreements (eg. pibor - paris interbank offered rate; mibor - madrid interbank. Lecture 8 - september 28th, 2016 (fundamentals of multinational finance textbook, chapter 1)