1. C H A P T E R 5 Currency Derivatives
COPYRIGHT © 2008 South-Western/Cengage Learning.

2. Exhibit 5.1 Computation of Forward Rate Premiums or Discounts

3. Exhibit 5.2 Currency Futures Contracts Traded on the Chicago Mercantile Exchange

4. Exhibit 5.3 Comparison of the Forward and Futures Markets
Source: Chicago Mercantile Exchange

5. Exhibit 5.4 Source of Gains from Buying Currency Futures

6. Exhibit 5.5 Closing Out a Futures Contract

7. Exhibit 5.6 Contingency Graphs for Currency Options

8. Exhibit 5.6 Contingency Graphs for Currency Options (continued)

9. Exhibit 5.7 Comparison of Conditional and Basic Currency Options

10. Exhibit 5B.1 Contingency Graph for a Long Currency Straddle

11. Exhibit 5B.2 Contingency Graph for a Short Currency Straddle

12. Exhibit 5B.3 Contingency Graph for a Long Currency Strangle

13. Exhibit 5B.4 Contingency Graph for a Short Currency Strangle

14. Exhibit 5B.5 Contingency Graph for a Currency Bull Spread

15. Exhibit 5B.6 Contingency Graph for a Currency Bear Spread