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Foreign Exchange

In: Absence of Arbitrage Valuation

Author

Listed:
  • Paskalis Glabadanidis

Abstract

Let i h be the periodic inflation rate in the home country, i f be the periodic inflation rate in the foreign country, e0 be the spot exchange rate given by the current home currency value of 1 unit of foreign currency, and e t be the period t home currency value of 1 unit of foreign currency.

Suggested Citation

  • Paskalis Glabadanidis, 2014. "Foreign Exchange," Palgrave Macmillan Books, in: Absence of Arbitrage Valuation, chapter 8, pages 117-135, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-37287-1_8
    DOI: 10.1057/9781137372871_8
    as

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