I am stuck on economics. Especially currency calculations. It seems more difficult than before.
And why am I stuck on currency? I mean why is that???
I’ve written a few articles that may be of some help:
- Covered Interest Rate Parity: http://financialexamhelp123.com/covered-interest-rate-parity-irp-pricing-currency-forwards/
- Triangular Arbitrage: http://financialexamhelp123.com/covered-interest-rate-parity-irp-pricing-currency-forwards/
- Mark-to-Market Value of a Currency Forward: http://financialexamhelp123.com/mark-to-market-value-of-a-currency-forward-contract/
- Pricing Currency Forwards: http://financialexamhelp123.com/pricing-currency-forwards/
- Valuing Currency Forwards: http://financialexamhelp123.com/valuing-currency-forwards/
- Derivation of the Currency Forward Valuation Formula: http://financialexamhelp123.com/valuing-a-currency-forward-whence-came-that-formula/
thanks a lot. I can’t even explain what I don’t know about currency right now.
My pleasure.
Foreign exchange is difficult. I have started with it and already started to feel the pain. Solving problems might clear out the concepts.
How much have you done till now?
@S2000 - oh wow, I’ve been on that site. Good stuff. Didn’t know you wrote those articles.
@Stella - Do you have a specific question? I’m feeling overwhelmed with quant and econ as well. I’m going in order of the books and I hope other topics such as equity gets a bit easier.
I’m trying to link what I learned in L1 and university with L2. I think what is so hard for me is that the book uses different variables to explain concepts that are exactly the same. For example, triangular arbitrage is very similar to a money market hedge.
Personally, I think this is a bad idea…use the L2 books only or you will confuse yourself…it’s all in there and that is what you will be tested on.
Glad to have been of some small assistance.
I read the topic 3 times, understand the first half, and need to do the second half. I think I need to do practice questions and a lot of them.
For the love of god can someone show me a timeline of events for ex.3 question 2? Im not understanding the exchange when the dealer wants to roll forward another 6 months… Wi!hsBFrwmjbfmiuzeuWfbFe!kewUFblIWUbvil