C H A P T E R 5Currency Derivatives

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Exhibit 5.1 Computation of Forward Rate Premiums or Discounts

Exhibit 5.2 Currency Futures Contracts Traded on the Chicago Mercantile Exchange

Exhibit 5.3 Comparison of the Forward and Futures Markets

Source: Chicago Mercantile Exchange

Exhibit 5.4 Source of Gains from Buying Currency Futures

Exhibit 5.5 Closing Out a Futures Contract

Exhibit 5.6 Contingency Graphs for Currency Options

Exhibit 5.6 Contingency Graphs for Currency Options (continued)

Exhibit 5.7 Comparison of Conditional and Basic Currency Options

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

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

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

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

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

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