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Options on Currency Futures
Instead of having to buy and sell currency pairs, options in a currency future offers…
Posted inInternational Finance
Options on Currency Pairs
The party that purchases a currency pair call option may also decide to settle for…
Posted inInternational Finance
Foreign Currency Futures
Currency futures make the buyer of the contract to buy the long currency (numerator) by…
Posted inInternational Finance
Long and Short Currency Trading
Currency futures and options are derivative contracts. These contracts derive their own values from utilization…
Posted inInternational Finance
Foreign Currency Futures & Options
Depending on the selection of buying or selling the numerator or denominator of a currency…
Posted inInternational Finance
Managing Economic Exposure
The economic exposure risks can be removed through operational strategies or currency risk mitigation strategies. Operational strategies ● Diversifying…
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Determining Economic Exposure
The economic exposure is usually determined by two factors − ● Whether the markets where the company…
Posted inInternational Finance
Calculating Economic Exposure
Foreign asset or overseas cash flow value fluctuates with the exchange rate changes. We know…
Posted inInternational Finance
Benefits and Risks of Financial Globalization
One of the major benefits of Financial Globalization is that the risk of a "credit…
Posted inInternational Finance
Economic Exposure – An Example
Consider a big U.S. multinational with operations in numerous countries around the world. The company’s…