Multinational Finance, 6th Edition

Appendix

Useful Rules and Formulas

Conventions Used in Multinational Finance

1. Uppercase letters are used for asset prices, including currency values.
2. Lowercase letters are used for rates of change.
3. Superscripts indicate currency units.
4. Subscripts indicate a point in time (for prices) or a period of time (for returns).
5. Continuously compounded returns are in italics.

Symbols

	Value of an asset in currency c at time t.
	Inflation (change in the Consumer Price Index) in currency c.
	Spot exchange rate between currencies d and f at time t.
	Percent change in the spot rate between currencies d and f in period t.
	Forward exchange rate between currencies d and f priced at time 0 and for delivery at time t (sometimes denoted ).
	Price in currency d of a futures contract on currency ...