Week 5 — Lectures 8 & 9, Reading 4
We're discussing the following for week 5: Lecture 8: Eurodollars, Parallel Settlement Lecture NotesEurodollar time deposits help us think about using balance sheets to line up cash inflows and cash commitments. The forward rate agreement (FRA) and the forward exchange contract give us some practice using implicit balance sheet arrangements to describe derivatives. The failure …