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Satisfactory Essays
| |UNIVERSITI TUNKU ABDUL RAHMAN (UTAR) |
| |FACULTY OF ACCOUNTANCY AND MANAGEMENT |
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| |Bachelor of International Business (Hons) |
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| |Unit Code & |UKFF4024
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| | |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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