Currency futures make the buyer of the contract to buy the long currency (numerator) by…

Currency futures and options are derivative contracts. These contracts derive their own values from utilization…

Depending on the selection of buying or selling the numerator or denominator of a currency…

The economic exposure risks can be removed through operational strategies or currency risk mitigation strategies. Operational strategies ●      Diversifying…

The economic exposure is usually determined by two factors − ●      Whether the markets where the company…

Foreign asset or overseas cash flow value fluctuates with the exchange rate changes. We know…

One of the major benefits of Financial Globalization is that the risk of a "credit…

Consider a big U.S. multinational with operations in numerous countries around the world. The company’s…

Companies are exposed to three types of risk caused by currency volatility − ●      Transaction exposure − Exchange rate…

Exchange rate fluctuations affect not only multinationals and large corporations, but also small and medium-sized…