Currency Exchange Rates: Understanding Equilibrium Value (2024 Level II CFA® Exam-Economics-Module1)

[@Music4LifeNFun]

I just want to thank Analyst Prep and James Forjan for posting all this quality content. Great material. Very well explained. This reading is a tricky one.

[@minecraftender02]

god bless the work you do for us

[@analystprep]

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[@kavyaverma9221]

This video literally saved my day.......Extremely well explained!!

[@brandod.huamandaga4534]

Thanks so much!!!

[@analystprep]

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[@tolue]

At around 15:45, are the CAD/USD offer and bid prices switched? Is this because of the direction of the arbitrage? Any help would be appreciated

[@damisiayoola4362]

Thanks Prof for the awesome support. one quick clarification on slide number 10, the dealer bid was higher than the Implied interbank cross rate which seems to be in contrary to the summary on 7

[@theaj1nkya]

Many thanks for the presentation. A question: 30:30 : Why are we taking the Forward Bid Price when we are long the base currency? Shouldn't it be the Forward Offer/Ask Price?

[@theaj1nkya]

Got it. It's because MTM is the cost of close and for close out you have to look at the offsetting transaction.

[@LL-fl3pz]

Thank you!

[@analystprep]

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[@dabselection]

At 7:52 the slide says that 'Larger spreads for larger, liquidity-demanding transactions' but the professor says the inverse. Can someone help me find out which one is correct?

[@theaj1nkya]

I think he said if you trade a million and a 100 you will have a larger spread for 100 (100 million)... although the 100 can be interpreted as 100 dollars, I think it was intended as 100 million and yes, larger sizes imply larger spreads in general.

[@lovish2728]

At time period 44:20 under international parity conditions, there seems to be a redundancy in point 2 and point 4. Professor can you help explain the same

[@supasetsothonsirimongkol9328]

Confuse why large inflow into EM market leads to or link to a great debt buiding up because i think if country has accumulated more debt then its domestic currency will be depre not appre but the inflow will make its domestic to be appre, please help to expaln professor james. Thank you