Background Note | HBS Case Collection | October 2004 (Revised February 2007)

Foreign Exchange Markets and Transactions

by Mihir A. Desai, Christina Pham, Kathleen Luchs and Yanjun Wang


Provides information on the foreign exchange market and exchange rate movements. Describes the different types of foreign exchange transactions, including spot transactions, forwards, swaps, futures, and options. Includes worked examples to help students understand the different instruments and an appendix with additional exercises. A rewritten version of an earlier note.

Keywords: Currency Exchange Rate;


Desai, Mihir A., Christina Pham, Kathleen Luchs, and Yanjun Wang. "Foreign Exchange Markets and Transactions." Harvard Business School Background Note 205-016, October 2004. (Revised February 2007.)