27. Example of a Forex Trading Combinations SOURCE: Eitman, David K., Stonehill, Arthur L., Moffet, Michael H. MULTINATIONAL BUSINESS FINANCE. Addison Westley: New York, 2001. p.101
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32. WHAT FACTORS INFLUENCE THE FOREIGN EXCHANGE MARKET Source: REUTERS FORWARD EXCHANGE and MONEY MARKET,John Wiley & Sons, 1999.
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38. Currency Conversion: Transfer of Purchasing Power Foreign Exchange Market Trade in home currency for foreign currency: increases demand for foreign currency [and decreases supply]; increases supply of home currency [decreases demand] in foreign exchange market HOME CURRENCY FOREIGN CURRENCY
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46. Big Mac Index June 2005 The Big Mac Index compares actual exchange rates with what would be the PPP exchange rate (“ideal” theoretical exchange rate where purchasing power is equal). Hill, p. 349 Switzerland 5.05 2.06 +65
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58. EXAMPLE of Factors affecting Forex Invester’s Business Daily , Vol. 21, No 170. Friday, Dec 10, 2004 p. A1 (faster-growing economy in U.S.) San Jose Mercury News, Dec 4, 2004, p. C-1 (U.S. employment data weaker than expected)