Publications
Publications
- February 1986 (Revised March 1989)
- HBS Case Collection
Note on Foreign Exchange
Abstract
Describes the operation of foreign exchange markets, including bid-offer spreads, cross rates, reciprocal rates, and forward rates. Provides several examples to demonstrate calculation of outright forward rates using discount and premium points quoted in the London Financial Times. Other examples demonstrate interest rate parity, and hedging foreign debt using long-dated forwards.
Keywords
Citation
Mason, Scott P. "Note on Foreign Exchange." Harvard Business School Background Note 286-067, February 1986. (Revised March 1989.)