¶ … dated after May 2016, you have read that provides a real world example of a class topic: foreign exchange market (spot transaction, forward transactions, forward change swap transaction), cross rate, arbitrage, triangular arbitrage, forward contracts, parity conditions, law of one price, purchasing power parity, real exchange rates, fisher effect, international fisher effect, interest rate parity, covered interest arbitrage, uncovered interest arbitrage. Choose any article which includes any of those topics, also it should be dated after May 2016 and it should be Wall Street Journal article. Include the title of the article and the date it appeared in your summary.

The article chosen is from the Wall Street journal and it is about Brexit and the perceived or actual effects in the market in light of that vote. Indeed, currency valuations and other things in the international markets swung greatly from the Brexit vote alone and this is curious given that there is not really precedent for this. Indeed, exchange rates and other financial markets seem to swing a lot of nothing or just assumptions and that hardly seems fair given that so much of that is out of the control of the British and a lot of the economic woes that have been happening in Britain predate the Brexit vote by months or even years.

(B) Write an INDEPENDENT paragraph explaining the class topic that the article illustrates.

The above proves that while actual performance and such is important, what is perceived or "expected" can make things go awry when what is expected does not happen. It just proves that events like Brexit or others like 9/11 and such have people assuming the worst or other things that cannot be proven or substantiate and are more about feeling. This is proof positive that finance and financial markets (among other things) often wane and rise based on assumptions and people are wont to responds in knee-jerk fashion. This is unfortunate given that these assumptions are at least partially unfounded or assume things to be worse than they really are. In other situations such as Brexit, there is no clear precedent and that muddies the waters even more.

Reference

Nelson, F. (2016). Brexit: A Very British Revolution. WSJ. Retrieved 27 October 2016, from http://www.wsj.com/articles/brexit-a-very-british-revolution-1466800383