Arbitrage, Hedging, and Speculation: The Foreign Exchange Market

Front Cover
Greenwood Publishing Group, 2004 - Business & Economics - 221 pages

Explains arbitrage, hedging, and speculation from the standpoint of a participant in the foreign exchange market--whether an individual trader or an institutional trader--who possesses analytical skill, economically sound judgment, and who has access to market data. In the foreign exchange market, arbitrage involves the simultaneous purchase and sale of a currency in different markets; the profit comes from the difference in the buying and selling prices. Hedging and speculation are opposing strategies for dealing with risk; hedging is a cover, and speculation is an assumption of risk. Authors also discuss futures, swaps, forward contracts, and other strategies. For financial scholars, students, analysts, and currency traders.


What people are saying - Write a review

We haven't found any reviews in the usual places.


2 Currency Futures Swaps and Hedging
3 Currency Options
Simple Options and Exotics
5 Arbitrage and Hedging with Spot and Forward Contracts
6 Arbitrage and Hedging with Options
7 Arbitrage and Hedging with Forward Forward Contracts in Interest Rates
8 Speculations in the Foreign Exchange Market

Common terms and phrases

Popular passages

Page 9 - York foreign exchange mid-range rates below apply to trading among banks in amounts of $1 million and more, as quoted at 4 pm Eastern time by Reuters and other sources.
Page 10 - Special Drawing Rights (SDR) are based on exchange rates for the US, German, British, French and Japanese currencies. Source: International Monetary Fund. European Currency Unit (ECU) is based on a basket of community currencies, z — currency devalued.

About the author (2004)

EPHRAIM CLARK is Professor of Finance at Middlesex University in London.

DILIP K. GHOSH is KLSE Professor of Finance at Rutgers University.

Bibliographic information