In an efficient market, optimal allocation of resources, ideally should keep agents from earning abnormal profits due to the interest rate and exchange rate differential, because these will be priced appropriately to reflect all the available information. The test for market efficiency then should reject any claims for abnormal arbitrage situations that may arise out of forward premium rate deviation beyond the transaction costs from those implied yet by covered interest rate parity (Thornton, 1989).(e.g., Frankel, 1992; Levich, 1979),(Fama, 1970,…
Introduction It is agreed that the influential Mudell-Fleming model and the Dornbusch overshooting model play significant roles in practical monetary policies for more than thirty years. Nowadays these significant economic models are still the fundamental theories to build up the monetary policy and to interpret the functions of modern monetary expansion in macroeconomics. However, in view of dynamical complication of the foreign exchange rates, the behaviour of exchange rates still could not…
ef{fig15}. The first forward log decrement remain nearly invariant in the excitation frequency range, while the first backward frequency drops a little. egin{figure}[htbp] centering includegraphics[width=8cm]{Fig15.pdf} caption{Mode paramenters} label{fig15} end{figure} Using the sine-swept excitation method, we did both backward and forward excitaions for the test rig, and Fig. ef{fig16:subfig} shows the full spectrum waterfall for the left bearing (Node 10). Using the idenitification…
A company purchasing a forward contract is guaranteed the exchange rate agreed upon in the contract regardless of the market exchange rate. Therefore, the expected cost will not be affected if the domestic currency weakens, foreign currency strengthens, or both, resulting in an unfavorable fluctuation. However, companies are also not able to benefit if the domestic currency strengthens, foreign currency weakens, or both resulting in a favorable fluctuation. The cost for a company to hedge…
home currency terms. In this case, the company can hedge FX risk exposure by entering into a short USD/long GBP position in forward or futures contracts. The main advantage of this hedging is that it reduces FX risks and provides certainty on the receipt of the future net income. In particular, hedging can add value if net income received in USD represents a greater proportion of total company’s revenue (Muff et al, 2008). Conversely, if the company expected to meet its future liabilities in the…
The Festival of Dangerous Ideas has long set the standard for sharing challenging ideas. But what exactly does this term mean? To me, ‘sharing challenging ideas’ means communicating thought-provoking concepts that confront the values and morals of society. Academic George Santayana offers us this wisdom, “Those who cannot remember the past are condemned to repeat it.” In the context of the Australian narrative, nothing has been more pertinent than our relationships and recognition of the…
Modern coaches are now expected not only to have winning seasons, but to be dominant over the other teams. This is especially true in the elite three or four percent of football programs that collect over 90% of college football revenue (Kram). One example of this is Texas University and their former head coach, Charlie Strong. Charlie Strong spent almost three years at Texas and after one particularly embarrassing loss was fired and replaced with an interim coach (Tracy). But most coaches, and…
people consider love to be the ultimate form of happiness while others believe success and wealth to be the key. There are a lot of people who disagree with both sentiments and believe that happiness comes from something else entirely, which we can observe in many forms of literature. One novel in particular, titled Pay It Forward by Catherine Ryan Hyde, describes happiness in many definitions, all of which can be interpreted by the reader. Each character views and experiences happiness in a…
Sports center was now saying any NBA team that has a chance to draft LeBron should because he’s the next superstar. The thing is no team wanted him because they were saying he was too young and wouldn't stand a chance in the NBA. So what he did was he proved that he could stand a chance by carrying his team to the AAU championship and he won it. The week after he won the AAU championship, he got a call from the general manager from the Cleveland Cavaliers they wanted to draft him and be a 6th…
‘Win One for the Gipper’ Knute Rockne On March 4th, 1888, Knute Rockne was born in Voss, Norway. Little did we know he would go on to be an amazing athlete, and even better coach. Rockne was one of the most successful coaches in the history of Norte Dame Football. He coached the Fighting Irish football team in the 1920’s, which is known as their “Golden Era”. During his time coaching, Rockne won three national championships – transforming this diamond in the rough team to the most popular team…