Speculative currency traders, for the most part, live and die on the basis of how well they can anticipate—or react to—imminent market moves. Their ability to forecast, however, ma...

As an alternative to using forward contracts, entities could also hedge by buying currency options—calls on the nonfunctional currency to protect against the risk of that currency...

A currency forward is simply an obligation to buy or sell a specified volume of currency units at a specified date for a specified price (exchange rate). For asset exposures, the c...

For something that is so fundamental to international commerce, it is astounding how much confusion exists about managing currency risk. For multinational corporations with multipl...

Despite the lack of certainty, it would seem that both alternatives of leaving the swap in place or liquidating the swap suffer from the same shortcoming. That is, in either case,...

Brazilian Real futures and options on futures at Chicago Mercantile Exchange offer a host of risk management strategies appropriate for those firms and individuals whose profit dep...

Without question, the adoption of FAS 133 will have an impact on the way firms use derivatives. One application that will certainly be affected is the use of currency swaps in conj...

This work-around may still be problematic in that the various hedging relationships may not all be satisfied using the same hedge effectiveness test, so the solution may end up bei...

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