Part 1:1) From Bloomberg, download the exchange rates of at least 6 foreign currencies (at least 2 of them have to be from emerging markets) including the US dollar. (The number of currencies depends on your choice, the more the better)2) Compute the one-year appreciation or depreciation against the US dollar. (Hint: Remember, ($: US dollar, X: The foreign currency that you have chosen)St(X/$) = Beginning RateSt+1(X/$) = Ending RateThe % appreciation (or depreciation) in X can be calculated as; [(Ending Rate – Beginning Rate) / Beginning Rate] x 1003) Explore recent exchange rate trends for the pairs of countries that you have selected (the time window depends on your choice, the wider the better). To plot trends, download the series to a spreadsheet.4) Try to plot examples of some fixed and floating rates. Can you tell from the data, which countries are fixed and which are floating?5) In the plots, can you locate data for an exchange rate crisis within your time-window?Part 2:1) Imagine you are a carry trader. Obtain one-month Swap rates for some major currencies: US dollar, pound, euro, Japanese yen, Swiss franc, Canadian dollar, and Austrian dollar (The number of currencies depends on your choice, the more the better) Find the lowest yield currency and call it X. How much interest would you pay in X units after borrowing X 1,000,000 for one month? (Hint: The raw data are annualized rates.) Obtain the exchange rate between X and every other high yield currency Y. For each Y, compute how much X would be worth in Y units today, and then in a month’s time withY-currency interest added. Revisit this question in a month’s time, find the spot rates atthe moment, and compute the resulting profit from each carry trade. Did any of your imaginary trade pay off?(Like the Same essay)
bloomberg_workshop_material.pdf

fin340_syllabus_4_.pdf

exchange_rate_analysis.docx

Unformatted Attachment Preview

Finance & Investment Group (FIG)
Bloomberg Terminal Workshop
By: Justin Monaco (jmonac3@uic.edu)
Introduction Video: https://www.bloomberg.com/professional/products-solutions/
To set up a new Bloomberg account:




Double click the Bloomberg icon on the desktop of the machine to open Bloomberg.
Select the Create New Login option below the username and password fields.
Follow the instructions to set up the account.
Bloomberg will text you an activation code, which you can enter to complete your account setup.
Keyboard:
The Bloomberg keyboard is color-coded to provide users with quick access to data and functions.
Yellow Keys – Market Sector Keys (F2 – F12)
Green Keys – Action Keys
Red Keys – Cancel & Log Off Keys
Keys to know:
Esc/Cancel – Think of it like a normal Escape key. Striking it will stop whatever you are doing.
Enter/GO – Think of it like a normal Enter key. You will use this after every command that you enter.
Print – Press Print once to print the current page or enter number of pages you wish to print & Print (ex. 5 Print)
Menu – Press Menu to navigate from any function back to a menu of related functions (and ultimately back to the main
menu).
End/Back – Will take you back to the key previous screen.
Help – Press Help key once to display help function and a description of the current function that you are using. Press
help two times to email the Bloomberg 24 hour help desk.
Upon Login:
4 Separate Bloomberg Screens will appear. These screens work independently from each other. For this introduction,
please only use 1 screen and minimize the other 3.
Framing what the Bloomberg Screen looks like:
o Top Left on home screen – Back/Forward & Book-marks


Similar to a web browser’s previous & forward page.
Gray boxes are your current Book-marks and Related Functions Menu.
o Top Right on home screen

Message (Green “Message” short-cut on keyboard)
 Similar to E-mail & Instant Messaging. Over 350,000 Business professionals are
interconnected thought this terminal.

Favorites (Image of a STAR )
 Add/Edit favorites – any page that you find interesting and would like to go back to it in
the future, add it to your favorites.
 My functions – These are just a list of commonly used functions on the terminal. Think
of functions such as an App on your phone. You perform different tasks.
BOX with arrow –
 This control allows you to take full screen shots, take a partial screen shot, print the
current page you’re on & allows you to EMAIL the screen also
Settings –
 Select the screen size you would like. And login off the terminal. Short cut is to Rightclick
Help (F1 Green short-cut) –
 Pulls up a description of the current function you are currently on in order teach
yourself what you’re looking at



o Command Bar


Similar to a Google Search bar. The Bloomberg terminal is entirely discoverable from the
command line, which appears across the top of every Bloomberg panel. If you know exactly
what you need on the system, you can use the command line to enter direct commands, such as
a function or security ticker. If you know what you want but you don’t know how to find it, you
can use the command line to search by keywords
Examples – Enter these examples into the command line
 People – Janet Yellen
 Companies – Tesla
 Tickers – “AAPL” Apple Inc.
 Weather – Weather
 News – Top news
 Jobs – Similar to UIC’s Job postings
What is a “FUNCTION”?
 Functions are applications designed to provide targeted information and analysis on either the broad financial
markets or on a specific security. Each function has a mnemonic (short name) used to identify and access the
function quickly
Further Bloomberg Training:

Bloomberg University – BU
o Seminars & Events – Bloomberg hosts classes on how to use this terminal.
o What’s News – Bloomberg 19,000 employees are coming up with new functions daily to use
o Marketing Resource Center – Brochures on how to use a Bloomberg Terminal
Bloomberg Certificates:

Bloomberg Market Concepts – BMC
o Any one in here currently doing this or has already been certified
o This is a self-paced 8-hour e-learning course that cover 4 different areas.
 Economic Indicators
 Currencies
 Fixed Income
 Equities
o You receive a certificate at the end of it that you can place on your resume so that employers see that
you understand the Bloomberg Terminal. And if any of you are planning on taking your CFA – this counts
for 8 credit hours. You will also learn over 70 different functions and how to use them.
o Sign-up & Login
Major functions:

Help – (Green “Help” short-cut) or (Green “Search” short-cut)
o Help – Press Help key once to description of the current function that you are using. Press help two
times to email the Bloomberg 24 hour help desk.

Top News – TOP
o TOP allows you to see headlines of the day’s top worldwide stories from various news sources, along
with editorially curated charts and news digests, so you can access the most important new sin one
place. You can browse top stories by predefined categories, such as finance and technology, to better
understand the breadth of the day’s current events. You can also narrow the deadlines that appear and
quickly translate top stories into another language.
o Click-on any news story and refer to the RED toolbar on the top
 SEND – Direct you to your Bloomberg email address. If you found an article that is interesting,
you can send it to someone.
 ACTIONS – Print (Green shortcut), download…etc.

Career Center – JOBS
o JOBS allow you to search for or post jobs on the Bloomberg Terminal, so you can meet your job seeking
or hiring needs.JOBS allows you to perform an advanced search and save or set alerts on specific search
criteria, whether you are job seeker or recruiter. As a job seeker, you can build a resume that is
searchable by recruiters.
o Click-on > Job Search > Advanced Job Search
 Enter search criteria
 Example: City > Chicago > Update > Search
o Click-on > Build Your Resume
 Fill out your job experience, education, contact info
o Click-on > Edit Settings
 Enter your geographic location

Bloomberg Intelligence– BI
o BI provides analysis on industries, companies, and expert topics, delivering key data and interactive
charting from BI analysts. Topics include government and legal issues; environmental, social, and
governance (ESG) standards. This extensive data across industries are located on this easy
multifunctional platform so you can gain deeper insight into an industry or top. BI allows you to
download data, so you can create your own models and analysis.
o
o
o

Left side
 Sectors & Topics – Allows you to browse dashboards from more than 100 industries and special
reports.
Right side
 Research from analyst
EXAMPLE:
 Click-on > Energy > Solar Energy Equipment
 Click-on > Industry Primer (located under the RED Toolbar)
 Overview of the solar power industry. If you want to become knowledgeable in the any
area, these primers really help
 Send and or Export to PDF
 Try for yourself and explore > Use the back arrow or the (Green “End/Back” shortcut) to return
to previous page
People Profiles – BIO
o BIO gives you access to Bloomberg’s vast database of biographical and contact information, so you can
conduct research on prominent global figures and enhance your contact network. You can also manage
your own personal profile in the Bloomberg directory.
o Elon Musk
Security Analysis:

Command Bar type in > Tesla
o 3 sections:
 Functions > BIO’s of people associated with the company
 Securities > Tesla Motors Inc.
 Search > Topics related to the word “Tesla”

Command Bar type in a specific company’s ticker symbol > TSLA (Yellow “Equity”)
o Quote Line (Green “Quote Line”)
 Includes the ticker at the top left, and pricing/value data to the right and below
o Security Menu appears
 The related analytics sections display a range of menu categories and suggested functions that
relate to the loaded security, allowing you to quickly access commonly-used functions, as well as
brose for new analytics to deepen your analysis.

Supply Chain – SPLC
o SPLC provides a comprehensive supply chain breakdown for a selected company, so you can analyze
revenues exposure for central company, its suppliers, and its customers, as well as track the
performance of a company against its peers

Excel Template Library – XLTP
o XLTP is a library of Microsoft Excel spreadsheets that allow you to perform custom analysis. XLTP
houses over 325 unique spreadsheets, categorized by market sector, player type, and region. XLTP
allows you to browse spreadsheets by category and spreadsheets by keyword, as well as store
a list of favorites. Once you have located the spreadsheet you need, you can open it directly in Excel.

Portfolio Administration – PRTU
o Create
o FALL 2016 PMT Portfolio
 Current vs. Cost
 Analyze
 Portfolio & Risk Analytics– PORT

Equity Screening – EQS
o EQS allows you to screen for companies that meet a customized set of criteria so you can generate
investment ideas, create lists of securities to follow, and validate your trade ideas by seeing how they
performed historically. You can create criteria based on categories such as sectors or countries, as well
as create criteria based on data fields including fundamentals, estimates, and financial ratios. You can
analyze growth, trends, and estimate revisions over time, as well as compare data against benchmarks
or relative data.
 TRY IT YOUR SELF – Enter PMT’s screening criteria!
 Add Criteria
1. “S&P 500 Index”
2. P/E < 25 3. P/FCF < 25 4. P/S < 10 5. “Short Interest percent of Equity Float < 15” Other Functions:  Bloomberg Map – BMAP o This is a function like Google Earth but faster, easier to use, and more clear. It's especially useful for anyone that deals with energy and commodities because you can get alerts on weather events (like earthquakes) and then see, for example, what mines or (say) nuclear plants are in the area.  13F Filing Summaries – FLNG o FLNG organizes historical and current global 13F regulatory filings into one searchable platform, so you can stay informed of 13F filings from the institutional investment managers with whom you do business. FLNG provides a detailed analysis of the changes and asset allocations reflected in the 13F on both an individual filer and aggregate fiscal period basis, so you can determine investors core holdings. You can activate filing alerts, set favorites. o The function allows you to sift through 13F filings to get a sense of what investors like Warren Buffett and Carl Icahn did with their money over the prior quarter. The function displays a table of the investor’s holdings and can be sorted by how much they increased or reduced their position in each.  What is a 13F Filing?  Every quarter, institutional investors must report any significant stock sale or purchase to the government in what’s known as a 13F filing.  Mergers & Acquisitions – MA o MA allows you to track and analyze mergers and acquisitions data in real time, so you can stay informed about all transaction-related activity occurring across numerous regions and sectors and easily filter for deals by a range of dimensions, such as deal type, size, and adviser. o Equity Offerings – IPO o IPO allows you to monitor equity offerings by stage, region, industry, and other criteria, so you can analyze offering activity and performance, as well as identify investment opportunities. IPO gives you the tools to define customs search and filter criteria, so you can quickly find the deals that match your investment and analysis objectives.   Sample Launchpad Views - LPSV o LPSV allows you to access a curated collection of sample “Launchpad” views, so you can quickly create a workspace catered to a specific asset class, job function, or region. Each sample view provides a description and preview to demonstrate how you can use Launchpad components in a practical workflow scenario. University of Illinois, Chicago Finance 340, International Financial Markets Fall 2018 CRN: 35819 - GENERAL INFORMATION – Instructor: Dr. Özgür Arslan-Ayaydin Email: orslan@uic.edu Time & Place of the Course: 11:00 – 11:50 Mondays – Wednesdays - Fridays Location: Douglas Hall, Room 220 Office Hours: Mondays 9:30 – 10:30 Office Location: University Hall, 21st Floor, Room Number: 2129. TA: (Mina) Tzu-Yu Lo TA e-mail: tlo22@uic.edu TA office hours: Tuesdays 3:30 – 4:30 TA office location: CME Training Lab – Douglas Hall, Room 170 In-Class Examinations: There will be two quizzes and two in-class examinations. No make-up will be offered neither for the quizzes nor the examinations unless there are compelling medical reasons which are supported by an official certificate of a doctor. All exams and quizzes are closed-books and closed-notes. Exam Format: Exams will consist of a combination of true/false questions, multiple choice questions, short and/or long essay questions and mainly problems requiring calculations. Please make sure you bring your calculator to each exam and quiz. There will be a final group assignment in place of a final examination. It will not be cumulative but will build on the material covered throughout the course. All exams and quizzes are closed-books and closed-notes. Class Participation: You are expected to enrich class discussion by your participation and this will constitute a portion of your grade. You are expected to attend all the lectures and attendance will be taken at the end of every lecture. You need to keep up with readings and any changes to them. During the term, those changes will be announced in the class and you will be held responsible for being abreast of such changes. You will be recorded as “Absent” if you arrive to the class after 11:20 am. Assignments: Assignments are to be submitted on due dates. Late submission will be penalized for the News Analysis and Presentation Assignment. Late Submission is not accepted for the Final Assignment. 1 Honor Code: This course is being administered under the policies of the University of Illinois at Chicago College of Business Administration Honor Code. All students are expected to respect and uphold this code. For the exams, no consultation of any form is allowed except that you are allowed to ask me questions for clarification. Class Policies 1- Please do not use e-mail as a substitute for seeing me during my office hours. Please remember that assistance by e-mail from my home is a courtesy, not a right. 2- Please be on time to lectures given that this is the kind of course where missing the first few minutes make it difficult to follow the rest of the lecture. 3- Make sure you are on time for exams. Extra time will not be granted for tardiness. The exams will take the entire period. 4- You are responsible for securing any handouts, class-notes, etc. in the event of absence. Nearly 40% of the course content is not covered in the textbook and therefore you depend on your lecture notes. It is strongly suggested that you get the telephone numbers/ e-mail addresses of several class members in the event of absence. Please do not ask the instructor for copies of class notes. 5- Incompletes are granted only in the most extenuating circumstances and therefore please pay attention to the University drop dates (September 7, 2018 is the last day to drop individual courses via Student Self-Service without receiving W - Withdrawn - grade on academic record.) An incomplete grade does not erase work already completed; it allows you extra time to complete the course when extenuating circumstances prevent you from doing so with the rest of the class. Once granted an incomplete, the course must be completed with the Instructor, not with another instructor teaching a similar class. 6- Please make sure ringers/alarms of your cell phones/pagers, etc. are turned off while you are in class. 7- Deadline for objecting your final grade for this class is December 21, 2018 Friday. Required Text: R.C. Feenstra, and A.M. Taylor “International Macroeconomics”, Second Edition, Worth Publishers, ISBN: 1-4292-4103-9 Recommended: 1) The Wall Street Journal 2) Financial Times 3) The Economist 2 News Analysis & Presentation Class Participation Weighting Quiz1 Quiz 2 Examination 1 Examination 2 Final Group Assignment Grading A B C D F 15 % 5% 10 % 10 % 20 % 20 % 20 % 90% - 100% 80% - 89% 70% - 79% 60% - 69% 0% - 59% Schedule of Classes Date Topics August 27 Introduction to International Financial Markets August 29 The Global Macroeconomy and International Financial Markets August 31 Foreign Exchange: Currencies and Crises September 3 Labor Day: No Class September 5 Quotation of Exchange Rates Bid-Ask Spread September 7 Calculations of Cross Exchange Rates September 10 Balance of Payments September 12 Balance of Payments (cont’d) September 14 The Choice of Exchange Rate Regimes September 17 Factors that Affect Exchange Rates in the Long Run September 19 Multilateral Exchange Rates September 21 September 24 1st QUIZ (Covering the lectures from August 28th to September 20th) Exchange Rate Regimes Currency Unions and Dollarization September 26 The Market for Foreign Exchange September 28 Hedging in the Forex Market October 1 Hedging in the Forex Market (cont’d) October 3 Case Study – Integrating Money Market, Forward and Options 3 Hedgings October 5 Arbitrage and Spot Exchange Rates Arbitrage with Three Currencies October 8 Arbitrage and Interest Rates October 10 Interest Rate Parity (IRP) October 12 1st EXAM (Covering the lectures from September 25th to October 11th) October 15 Covered Interest Arbitrage October 17 Uncovered Interest Arbitrage October 19 Uncovered Interest Arbitrage (cont’d) October 22 Purchasing Power Parity (PPP) October 24 PPP Deviations and the Real Exchange Rate October 26 Exchange Rate Pass Through October 29 Fisher Effect October 31 The Asset Approach to Exchange Rates in the Short Run November 2 November 5 November 7 2nd QUIZ (Lectures between October 16th and November 1st) The Asset Approach to Exchange Rates in the Short Run (cont’d) Unifying the Monetary and Asset Approaches for Exchange Rates November 9 Long Run Policy Analysis of Exchange Rates November 12 Long Run Policy Analysis of Exchange Rates (cont’d) November 14 Adjustment of Exchange Rates from Short Run to Long Run November 16 November 19 November 21 Adjustment of Exchange Rates from Short Run to Long Run (cont’d) Fixed Exchange Rates and the Trilemma Adjustment of Exchange Rates from Short Run to Long Run in Fixed Exchange Rate Regimes November 23 THANKSGIVING HOLIDAY November 26 The Euro November 28 Factors Affecting Currency Union Decision November 30 2nd EXAM (Lectures between November 3rd and November 4 29th) December 3 December 5 December 7 History and Politics of the Euro Eurozone vs. US as Optimum Currency Areas Brexit European Central Bank (ECB) The Eurozone Crisis and Now. *The schedule may be subject to change during the term. - ASSIGNMENTS – Assignments are an integral part of this course and your grades. They are designed to amplify classroom work and to help you more fully understand the concepts in each chapter. Assignments are of two types. First, there is a team news analysis and classroom presentation, with a written summary. Finally there is a final assignment, which will be completed as a team p ... Purchase answer to see full attachment

Order your Assignment today and save 15% with the discount code ESSAYHELP

X