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| |UNIVERSITI TUNKU ABDUL RAHMAN (UTAR) | | |FACULTY OF ACCOUNTANCY AND MANAGEMENT | | | | | |Bachelor of International Business (Hons) | | | | | |Unit Code & |UKFF4024…show more content…
| | | |4. Explain how foreign exchange market functions; differentiate between bid and ask rates, spot and forward | | | |rates; compute cross rates, forward premiums and discounts. | | | |5. Explain the relationship between exchange rates, interest rates and inflation rates; apply Interest Rate | | | |Parity and Purchasing Power Parity to compute arbitrage profits; explain factors that influence the demand and | | | |supply of a currency and how they affect exchange rates. | | | |6. Explain how governments intervene in foreign exchange market and affect exchange rates. | | | |7. Differentiate between transaction, economic and translation exposures; apply various techniques to hedge | | | |transaction and economic exposures. | | | |8. Compute the payoffs from forward market hedge, money market hedge and options hedge. | | | |9. Recognise the features of foreign currency futures, options and swaps

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