AFM: Concepts and Practice · Part C: Financial Management

Chapter 17: Forex arithmetic

How a bank prices currency: two-way quotes, cross rates, forwards and the margins on its merchant rates.

Buyers of the e-book, or of the print copy, which includes it, read the whole chapter. Everyone can read the free sample, pages 1 to 24 of the e-book.

In this chapter

• 17.1Quotes and value datesp. 227
• 17.2Cross rates, chain rulep. 228
• 17.3Forwards and parityp. 229
• 17.4Merchant ratesp. 230
• 17.5Forward contractsp. 231
• Exam traps and quick checksp. 232
• Practice: 16 questions in three roundsp. 233
• Answers, with every wrong option explainedp. 235
• Make it stickp. 237
• Chapter 17 on one pagep. 238

Corrections and updates

None for this chapter so far. Every correction to the book, and any rule that changes after its date, is listed on the errata page.