currency

Management is generally risk averse and often will take measures that reduce or eliminate exposures that could have a harmful effect on its business. A risk Avoidance measure is known as hedging the risk or the exposure. It is important to recognize that currency exposures could create...

Currency risk or exchange rate risk arises in buying, selling, investing and borrowing. Therefore, it is essential to recognize the nature of currency risk and how they arise in business. 1) RISKS IN SELLING ABROAD: A company selling goods or services abroad faces currency risk, regardless of...

Currency risk, also referred to as foreign exchange risk, is the risk from adverse movements in exchange rates. When a company has assets or liabilities denominated in a foreign currency, or contracts to receive or pay in a foreign currency, it has an exposure to that currency. An adverse...

RBI in its slack season credit policy '97 allowed the authorized dealers to arrange currency swap without its prior approval. This was to enable those requiring long-term forward cover to hedge themselves without altering the external liability of the country. Prior to this policy RBI had been...

Currency swaps can be defined as a legal agreement between two or more parties to exchange interest obligation or interest receipts between two different currencies. It involves three steps: • Initial exchange of principal between the counter parties at an agreed upon rate of exchange which...

a) Hedging a Foreign Currency with calls. In late February an American importer anticipates a yen payment of JYP 100 million to a Japanese supplier sometime late in May. The current USD/JYP spot is 0.007739 (which implies a JYP/USD rate of 129.22.). A June yen call option on the PHLX, with...

Hey Member's, I am looking for few information on Hedging a Foreign Currency with calls, please help me with the same.

Hedging with currency futures: Hedging contractual foreign currency flows with currency futures is in many respects similar to hedging with forward contracts. A receivable is hedged by selling futures while a payable is hedged by buying futures. A futures hedge differs from a forward...

Hedging with Currency Options: Currency options provide a more flexible means to cover transactions exposure. A contracted foreign currency outflow can be hedged by purchasing a call option (or selling a put option) on the currency while an inflow can be hedged by buying a put option. (Or...

Currency Swaps: In a currency swap, the two payment streams being exchanged are denominated in two different currencies. Usually, an exchange of principal amount at the beginning and a re-exchange at termination are also a feature of a currency swap. A typical fixed-to-fixed currency swaps...

Euro currency Markets While opening up of the domestic markets began only around the end of seventies, a truly international financial market had already been born in the mid-fifties and gradually grown in size and scope during sixties and seventies. This refers to the well-known...

While opening up of the domestic markets began only around the end of seventies, a truly international financial market had already been born in the mid-fifties and gradually grown in size and scope during sixties and seventies. This refers to the well-known ‘Eurocurrencies Market’. It is the...

CURRENCY BASKET: A currency basket is a selected group of currencies in which the weighted average is used as a measure of the value or the amount of an obligation. It functions as a benchmark for regional currency movements - its composition and weighting depends on its purpose. The...

HEY FRIENDS HERES THE PRESENTATION ON EURO CURRENCY MARKET

PRESIDENT Barack Obama, on his first visit to China this week, urged the government to allow its currency to rise. President Hu Jintao politely chose to ignore him. In recent weeks Jean-Claude Trichet, the president of the European Central Bank, and Dominique Strauss-Kahn, the managing director...

Last night I was thinking about why the world can't make the things simple? Where any person from Gujarat, who don't have to take any currency risk to trade in Punjab. why don't the same idea for the World? So that the risk of the currency is gone!! What do you think about it? Regards, Birju...

Europe is planning to put only one currency in the whole Europe. The ppts are shows the same task in detail. Regards, Birju Shah :SugarwareZ-216:

Quest HR - Job Role: Primary Tasks: bull;Responsible for Acquiring and activating SME (Small Medium Enterprise), corporate amp; individual clients for trading in currency derivative segment bull;Continuous interaction with the clients to identify their...

Design a Currency Symbol for the Indian Rupee Most countries in the world have distinct identification symbols for their currency - $ represents the US Dollar, £ is used for GBP, € for Euro, etc. but there’s still no official currency sign for the Indian Rupee. Design the India Rupee Symbol -...

Here is a project report on Accounting Implication on Foreign Currency transaction....